Originally Posted by pilotbob
It's no wonder our country is in a recession. This get it on credit attitude is a problem.
I currently carry no credit card debt, have no car loans and am paying double house payments (doubling principle) amount each month. I can't wait for my mortgage burning... I hope it's before I am 50.
One good tip is to find an extra $100 by cutting out luxuries... and applying it to your highest balance credit card. Once that is paid off, roll all that to the next one then the next. Eventually you will be paying them off faster... once done start applying them to your mortgage if you have one.
The only savings you should be doing while in debt (in my opinion) is to maximize 401K match. That is usually the best ROI you will every get.... unless you are a stock market guru.
You've just described the snowball method. I have to say though I think its a good thing to save some emergency cash while paying off cards, just in case. Then once those are done worry about the 401k (and max it out!)
I don't want to pay my mortgage off early since I probably will only stay there for a couple years. My rate will be around 5%, so my money is better of in the stock market long term where I can earn 8-12%