Should You Save For Retirement Or Pay Off Debt? 
There is not an easy answer to this question as there are varying degrees of debt . It can become a math problem in determining the shortest distance between retiring debt while also accumulating savings for retirement . Generally speaking it is best to reduce the `` bad '' debt which is not tax-deductible and accruing high interest rates . You figure a credit card at 18 % interest is going to yield an immediate 18 % return on your investment by paying it off . However I would think twice before paying off a zero % car loan and instead use the bank 's money to fund your Roth IRA . Also , if you stop contributing to a 401 -LRB- k -RRB- plan you may be leaving `` free money '' on the table by neglecting the employer match if there is one . Overall , if you have an overwhelming amount of debt , it is best to tackle that first , but once it becomes manageable , to fire up the retirement savings , especially in a 401 -LRB- k -RRB- with an employer match . 