Hi all,
I'm in the process of paying down one fairly large cc debt (~$25K) and my school loans (~$30K), so most of my (post-tax) income is/will be going to pay those. That said, I've read from others here that because the rates on both are pretty low (3.74% and 4%, respectively), I should not be so aggressive about paying them off, but instead should pay the minimums of something close to it and put more money into my 401 since I'l get better returns.
To my thinking, that scenario means the debts will take way longer to pay off than I would want them to, but am I missing the bigger, long-term income picture?
Also, related to the question above. Do folks here (or should people in general) max out their allowable 401(k) contribution by default (up to $18K in 2015) and then work with their remaining net pay to pay other bills and expenses? Or does it make more sense to get more take home pay each week so I have more cash on hand to pay down debts?