Pay Off Debt, Invest, or Both?

Should I stop investing in my 401k while working to pay off my debt? In most cases, the answer is no. Unless someone's budget is really tight, even after trimming nonessentials, it may be wise to temporarily suspend 401k contributions. However, most people can afford to at least put in the minimum amount to take full advantage of their employer's 401k match. So, if your employer matches 50% on up to 7%, you should put in the 7% so you don't miss out on that "free money" from your employer. Once your debt is paid off (with the exception of your mortgage) then max out your retirement accounts.

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