FAQ – Savings and debt

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What's the best way to save money while paying back high-interest credit cards?

If you have a lot of high-interest credit card debt, it may make sense to concentrate on paying that off before contributing to your 403(b) or 457 plan. Why? If you are paying 18% or more on your credit cards, and your 403(b) or 457 plan investment earns an average of 6%, you are paying out more in interest than you are earning. The exception is if your district offers a matching contribution – then you should try to contribute enough to your plan to qualify for the match or you are giving away free money. However, not many districts can afford to offer a matching contribution.

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