Accrued CC debt - stop contributing to retirement/529s?

[Anonymous]

OP, what is the CC debt amount and how is your credit?

[Anonymous]

It would be helpful if you shared numbers, OP.

You did share your income, but how much is your debt, what is your mortgage payment, what is your daycare payment, what other child-related costs do you have, do you have a car payment or lease, how much do spend on takeout? What sort of frivolous things do you spend money on that you could cut back on?

Here's one tip: When my husband was unemployed, we stopped buying things online. I think that probably saved us hundreds of dollars a month.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I would drop to the maximum match. So if your company matches the first 5%, drop to exactly 5% for now.

This. The match is 100% return. Take advantage of it.

+1
Drop to the maximum match so not to leave anything on the table and then pay off the rest as fast as possible.

[Anonymous]

Can you open a new card with a 0% 12 month APR for the first year and transfer the balance? That would give you 12 months to sell the house, be in your new job for a year, and pay off the debt.

I was in a similar situation and this is what I did. My debt at the time was only $10,000 though. OP you need to post numbers.

[Anonymous]

Nowhere does Op say that retirement is 401k.
Stop the 529 and investment account (or Roth) contributions. Market is near all time highs still.
Pay off the debt.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I'm guessing the interest rates on your card are north of 20%? Yes, you should stop other savings to pay them off.

+1

+2 My husband was laid off recently so I lowered my retirement contribution to the employer match, which I could easily do on line. Credit card interest rates are no joke. Do whatever you can to pay off those balances asap.

[Anonymous]

I've thought about this a lot. I would never give up the company match of a 401k. If I was in a bind with CC debt and didnt have many options, I would borrow from 401k rather than stop contributing and giving up the match. That way you are only temporarily giving up the market gains so you can pay off high interest debt.

I would pause 529 funding completely though.