Should You Stop Your 401(k) to Pay Off Credit Card Debt?
From Becoming Financially Confident · 01:02:04
Show by Ralph V. Estep, Jr.
Send Us Your Money Questions and FeedbackA listener is carrying $9,600 in credit card debt at 24% interest, and the minimum payments barely seem to make a difference. They're thinking about pausing 401(k) contributions for a year to get rid of the debt. But their employer offers a dollar-for-dollar match up to 4% of pay. Is paying off debt faster worth giving up that match? Ralph Estep Jr. and Juliet Chuang discuss how to balance high-interest debt with retirement savings, why the full employer match matters, and how to build a repayment plan that doesn't put your financial future on hold.In this episode, you’ll learn:Why stopping your 401(k) contributions could mean giving up valuable employer matching moneyHow to evaluate contributions above your employer's matching thresholdWhy high-interest credit card debt needs a realistic repayment planHow having a baby changes financial responsibilities between partnersWhy delaying retirement savings is a common financial regretHow AI voice-cloning scams work and how families can protect themselvesWhat happens when a cosigned car loan falls behindThe takeaway: You don't necessarily have to choose between paying down debt and saving for retirement. Understanding your employer match, interest costs, and budget can help you make a more informed decision.Would you prioritize paying off high-interest debt or keeping your full 401(k) employer match? We'd love to hear your answer.Resources Mentioned:Send Us Your Money Questions and FeedbackConsumer Financial Protection Bureau: Understanding Credit Card InterestFTC: How AI Voice-Cloning Scams WorkABOUT THE SHOWBecoming Financially Confident brings practical, approachable money conversations with Ralph Estep Jr. and Juliet Chuang. Together, they help listeners understand their options, make thoughtful financial decisions, and break free from money shame, one conversation at a time.
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