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

This. And pay off the high interest debt ASAP. Since it’s January you have plenty of time to make higher retirement contributions at the end of the year after you pay off the CC debt.

Never stop retirement contributions they are not optional. Fix your poor person mindset.

You can pause 529s. Most of them give crappy returns anyway.

How long to pay off the debt if you stop 529s and cap retirement at the match? If your cc interest is sky high that will wat into whatever gains you accrue in other accounts.

Stop saving for retirement and 529 until you pay off your credit card debt. The Internet on your credit card is significantly higher than the return from your 401k and 529

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.

How much is your debt? Hard to give you some advice without this context.

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

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

How much is the debt, what are your monthly 529 and retirement contributions? Do you get a match from your company? How long would it take to pay off the cc if you don't stop retirement and 529? How much do you have in retirement?

This. Not enough information to solve.

But, I probably wouldn't do it, as long as you can pay off the credit card debt in a few months and actually do it. The difference in interest is probably not enough to pay yourself in time to figure out the optimal strategy here.

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

How much is the debt, what are your monthly 529 and retirement contributions? Do you get a match from your company? How long would it take to pay off the cc if you don't stop retirement and 529? How much do you have in retirement?

Without knowing any of that, I would stop 529 but not retirement. And try to rebuild your emergency fund a bit after you pay off the cc before restarting 529.

Anonymous wrote:Don't delay/interrupt retirement funding. (Especially for you, because you don't know what kind of HR you're dealing with. It's often easier to get everything set up during onboarding than to change things after you're hired and they've ticked all the boxes.) You can pause 529 contributions with the understanding that you'll lump sum in some of the house sale proceeds to get back on track.

This. Continue retirement contributions. Lump sum 529 plans when you sell the house. Knock out the debt as fast as you can.

Don't delay/interrupt retirement funding. (Especially for you, because you don't know what kind of HR you're dealing with. It's often easier to get everything set up during onboarding than to change things after you're hired and they've ticked all the boxes.) You can pause 529 contributions with the understanding that you'll lump sum in some of the house sale proceeds to get back on track.

To add: with my income, we have an HHI of 325 in a MCOL and are in the process of selling our old house, where we should make a margin of 20-30k (we didn’t own it long). Three kids, one in daycare. The proceeds would cover the debt but I don’t know how long it will take to sell in this market.

If any of this matters.

Last year we had a double whammy of buying a house, and me being laid off three weeks later (fun!). I’ve just started at my new job, but in the interim we accrued some credit card debt.

We are serious about paying this off in the next several months, but should I not contribute to investment accounts at all in the meantime, or less than I normally would, or continue with my normal contributions?