[jfruh]

Well, there's debt and there's debt. Right now my wife and I have three major debts: mortgage (4%), student loans (4.5%), HELOC (1.75%) -- and those rates are all effectively lower because the interest is tax deductable. When you're talking those kinds of interest rates, I don't think it's unreasonable at all to put money into retirement accounts (especially if those too are tax advantaged and/or if your employer matches).

But yes, if you have any kind of credit card debt, you're probably paying 10% or more on that, and you should be paying that down (and not adding anything new!) with money you'd otherwise earmark for savings.

[ww520]

Actually paying down the mortgage would be sensible. It is a guaranteed return risk-free investment. Mortgage rates are expensive when compared to comparative near risk-free investment; Treasure notes, CD, money market are in sub-1% range. Comparing mortgage paydown (risk-free) to stock (higher risk) are not a fair comparison.

[latch]

My CC interest rate is 38% :) Sometimes I feel like paying everything but $1 just to see the interest charged..but I'm too lazy to stop the auto-payment system.