heavenlyjane
Level 2 Member
We have a spare $1000 at the end of each month. I am comfortable with our existing financial cushion and would like to use this windfall to pay down our final two debts.
Is it better to pay down a 401K loan, which has 3 years of payments left in it? Or to make an extra payment to our mortgage principle? I'd love both loans to be gone but it seems to me that I should pay down the 401K first because it doesn't have an tax advantages attached to it. My husband needs some persuasion and I need reassurance that my logic is sound.
Input, please? Thanks.
Is it better to pay down a 401K loan, which has 3 years of payments left in it? Or to make an extra payment to our mortgage principle? I'd love both loans to be gone but it seems to me that I should pay down the 401K first because it doesn't have an tax advantages attached to it. My husband needs some persuasion and I need reassurance that my logic is sound.
Input, please? Thanks.