First time poster, long time lurker, so I apologize if I inadvertently break any rules.
I 25[M], have been debating whether I should continue contributing 7% of my pay to my 401K or if I should contribute only up to my employer match (3%) and use the rest to pay off my debt. I am in no way struggling to pay any of my bills/debt, but I would like to start paying off my debt faster and sooner.
A break down of my income/contributions is as follows:
- Salary: 93K
- 401K Contribution: 7% (Employer Match: 3%) (Traditional IRA)
- Current Vested 401K Balance: 20K
- Savings: 5K (working on getting this up)
- Checking: 5K
- Investments: 16K
A break down of my debt (Im not behind on any payments, i'm actually ahead on all of these)
- Total Debt: 50K
- Federal Student Loan: 18K (3% interest rate pre-covid) (this isn't accruing interest until 9/2021 due to covid)
- Parent Plus Loan: 16K (6.9% interest rate pre-covid) (this isn't accruing interest until 9/2021 due to covid)
- Auto Loan: 16K (2.2% interest rate) (I was dumb, should have bought cheap and used)
- No CC debt
As mentioned above, i'm not struggling to pay off any of my debt but i'd love to be more aggressive about paying it off. Thanks in advance for any advice and help.
TL;DR
Should I decrease my 401k contribution to my and put that money towards paying off my debt faster?
Submitted February 11, 2021 at 04:17PM by SteveMcBlaster https://ift.tt/3a9y9J8
