I need advice on what to do. My wife has been at home with our son for the past year and a half. In that time we have lived on my income of $98,800. Due to student loans for both of us and some bad debt this has just about let us keep up, ie we have not added new debt but we have not been able to save or pay off debt other than regular payments. Now she is looking to go back to work and aggressively seeking a job. So my question is should we at least get the match on our 401ks (which I have not been able to thus far) and then attack debt and save what we can or should we put all our money towards the debt and save some on the side. We are looking to buy a house soon. The debt in question is a 28,000 debt consolidation loan at 20%. I pay 800/month now with the minimum at 750 to pay it off in 5 years. When my wife starts working we would most likely be able to pay 1100-1200 per month and then save around 300-400 month. I am banishing the credit card to business use only and then when my company gives me a corporate card then its gone for good. So does it make sense with this much debt to forget about the 401k for a while and start fresh when the debt is paid off. It should take about 2 and 1/2-3 years to pay it off at this rate, longer if 401k is contributed to. Also, bonuses, etc will be dumped into the debt as well.
Thanks.
Dave
Dave
Thanks.
Dave
Dave