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Ask Dave

Fund Retirement While Getting Out of Debt?

Carrie and her husband have $30,000 in credit card debt, $13,000 in a home equity loan, and a $70,000 mortgage.  They stopped paying on the credit cards last year.  They bring home $50,000 a year and they have a 401-K.  Should they keep funding their retirement while they have this debt? 


Read what Dave says:
Stop the 401-K immediately and work your way through the baby steps.  Only invest in your 401-K plan after you’ve finished paying all your debt except the house.