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We just got married, and we have started our monthly finance reviews. Everything there is great. We have a joint checking account where our direct deposits go, we have a joint savings (and have our $1000 emergency fund), and we agree our where our money goes each month.

I bring about $10,000 in debt from being stupid with credit cards a few years ago. I no longer use them, unless I have to to use it for work. These charges are expensed and paid off, and I only have to do it when our travel company screws up on a rental car not going on the company card.

She has around $25,000 in debt - car and credit cards. She no longer carries her credit card with her.

We have been listening to the Dave Ramsey podcast, and we are wanting to follow his “baby steps”, but when talking to my dad about it, he thinks it is silly for me to stop contributing to my 401k to pay down the debt.

For this year, I’ve been contributing 20% until I just dropped it to 0%. My wife has just reached the employment term to begin contributing to her 401k. They have a financial advisor that goes over finances with them, and he suggested we at least “contribute the minimums” to our 401k.

My question is - should we strictly follow Dave Ramsey and not contribute to our 401k until our debt is paid down and we have 3-6 months of expenses saved, or should we be contributing to our 401k while paying down the debt?

More info —

*My income - base of $75k, with an additional of $50k+ variable.

*Her income is $43k, with additional variable income that averages to around $6k+ (taking average of last few months)

*We are mid-to-late 20s in Texas

I’m not sure what else I need to include to help you all give me advice. Please ask, and I will provide. Thanks in advance.

EDIT: These are the debts and interest. I have also include info about 401k contributions.

  1. Collections - $1,373

  2. Car 1 - $4,587, ~5% interest

  3. Car 2 - $3,099, 0% interest if paid by Oct (our plan has us paying this by then)

  4. CC 1 - $5,587, ~20% interest

  5. CC 2 - $3,200, ~20% interest

  6. CC 3 - $15,870, ~20% interest

  7. CC 4 - $3,720, ~7% interest

My 401k match is a flat match (not sure of correct terms) of ~15% of total contribution (I contribute the $10k and they contribute $1,500). Hers is 3%; I’m still trying to figure out of what.



Submitted August 06, 2018 at 10:51PM by MyGFisSexyAF https://ift.tt/2ANGDG5

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