E-Mail 'Budgeting 101 Series: Getting Rid of Debt' To A Friend

Comments

1. Rich April 18, 2013 at 2:49 pm

   Greetings and thank you for the huge encouragement you are and the gifts that the Lord has provided you.

   I have a question wrt 401K and debt:
   I am putting money into my 401k at a rate of 8%. I have a modest amount in the account currently. I a specific debt load which could not be covered by the 401k savings. Nevertheless, does it make sense to stop contributing to the 410k and burn the debt down or continue both (paying off via snowball and saving)? More precisely does it make sense to withdraw the 401k savings, pay the penalty, and apply it to the debt and continue to pay it down?
   Concern: I am 9 year out from retiring, past poor spending/savings habits have caused depletion and retirement looms.
   Your prayerful response is much appreciated. Many blessings.

   • Kelly April 19, 2013 at 8:46 am

     Rich, I would encourage you to go through Dave Ramsey’s site and contact one of his recommended debt counselors for the answer to your question. I know they will be able to help you!