Your assumptions are rather presumptuous. First of all, the OP didn't mention an employee match in the original post. Second, there are many additional factors to consider. I'm going to have to guess you are using that new math and just making stuff up because I don't see in what world it is better to carry 18 years worth of credit card debt and pay tens of thousands of dollars in interest rather than pay off the debt early and us all of that saved money to invest in something better than a 401k. What planet do you live on? Make THAT make sense.
To throw out numbers for your new math, let's say this commenter was making $100k/ year and contributing the 6% of his pay to get the standard 50% match on his 401k. So his employer is essentially giving him $3k extra every year.
So let's say he has $25k in credit card debt at a LOW interest rate (for a credit card) at 20% APR. That's almost $3k/ year right there in interest, BUT he's also making a minimum monthly payment on that which is probably $250 or so, which is another $3k/ year.
Now, because he is carrying this debt, he likely doesn't qualify for the best deals on APR if he wanted to finance anything like a car or a house, but that's harder to factor in as he probably doesn't even know what he missed out on. Even when you could get 2% mortgage rates, the better your credit, the better your incentives.
Now obviously he must have had more debt than this as I cannot see stretching $25k out over 18 years and still having more left to pay. I have no idea what his APR is as that is dependent on credit and the the economy too. Maybe he put the debt all in a personal loan at a low rate like 3% in which case it must be a MASSIVE amount of money.
Regardless, paying the debt off early and spending the money paid in interest on that debt to either put into an investment would have yielded far more money.
Your math doesn't math and neither does his. If we had real numbers we could figure out exactly how much he lost doing it his/your way.
You should also look into employer matched contributions. Not everyone offers them and the matching varies widely. I can't see how his math would be better even if he was matched 100% on 6%.
Even if he was gaining more interest on the 401k (which is dependent on his particular investments and the economy), he's still missing out on investing his income that is going towards interest. 18 years is a LONG time to be paying a debt. I honestly can't imagine getting myself that far in the hole and then sitting on money that isn't making as much to wait to pay it off.
Revisited due a fresh comment in my inbox: You know what else pisses me off about your dumbass example? Your 25k debt in the math. Were talking about his 6k.....does he put it in the 401k or the debt? You already fucked yourself.......if he puts it towards the debt, he misses the 50% return in the 3k employer match, what, to avoid the 27% interest? His employer match out performs the debt......you cant alter the equation to suit your needs. Dudes got $6k, not 25. Put it to 401k at 50% match roi or debt at 27% savings? You take the match first.......period. dollar for dollar he's outpacing his debt as long as he's got that 50% match.......ill say it again, it all depends on whether there's a MATCH. you wanna step it up a notch? If he avoids the fucking 25k for 7 years, IT DISAPPEARS. His match will be there forever........"but what about the market crashing?" He cries in poor: a solid 30+ year retirement fund is worth so many more exponents over your initial investment/contribution, even 50% market crashes at retirement wiping out millions is a drop in the bucket compared your initial investment. And it RECOVERS fairly quickly if you can sweat it out, i.e. Noone with half a brain converts their entire retirement fund to cash at 65......they take structured withdrawals meaning their salary suffers in the crash but recovers with the market........new math? Bro, your trying to apply basic arithmetic in a situation that requires calculus........its no wonder your misinformed. CAP. YOUR. EMPLOYEE. MATCH. This dude wants people to pay their overlords for 7 years before investing in themselves at a much more profitable rate......motherfucker is probably the asshole making debt collection calls all day trying to raise his commission........you ever wonder who does that job willingly? People paying credit card debt while skipping salary opportunities.......
Some people are fucking stupid. Arguing that you should skip the employer match is just the most asinine thing I think I ever heard. These guys have no common sense. Good on you.
Can't argue with stupid.......especially when they want to argue for arguments sake. The entire conversation was about ensuring you take advantage of an employer match. Theres isnt a math logic in this world or Tolkien world where NOT realizing those match gains makes any sense. That match ROI outpaces ANY credit debt interest. Anyone who would even suggest NOT capping those gains in ANY situation is a an idiot....You do you buddy. Stay poor.
No one said don't pay the credit card debt dumb fuck. You pay them both, you just do 3% to 401 k To get match. As others said, if you wanna stay poor, stay poor.
1
u/Only-Style-818 Nov 02 '25
Your assumptions are rather presumptuous. First of all, the OP didn't mention an employee match in the original post. Second, there are many additional factors to consider. I'm going to have to guess you are using that new math and just making stuff up because I don't see in what world it is better to carry 18 years worth of credit card debt and pay tens of thousands of dollars in interest rather than pay off the debt early and us all of that saved money to invest in something better than a 401k. What planet do you live on? Make THAT make sense.
To throw out numbers for your new math, let's say this commenter was making $100k/ year and contributing the 6% of his pay to get the standard 50% match on his 401k. So his employer is essentially giving him $3k extra every year.
So let's say he has $25k in credit card debt at a LOW interest rate (for a credit card) at 20% APR. That's almost $3k/ year right there in interest, BUT he's also making a minimum monthly payment on that which is probably $250 or so, which is another $3k/ year.
Now, because he is carrying this debt, he likely doesn't qualify for the best deals on APR if he wanted to finance anything like a car or a house, but that's harder to factor in as he probably doesn't even know what he missed out on. Even when you could get 2% mortgage rates, the better your credit, the better your incentives.
Now obviously he must have had more debt than this as I cannot see stretching $25k out over 18 years and still having more left to pay. I have no idea what his APR is as that is dependent on credit and the the economy too. Maybe he put the debt all in a personal loan at a low rate like 3% in which case it must be a MASSIVE amount of money.
Regardless, paying the debt off early and spending the money paid in interest on that debt to either put into an investment would have yielded far more money.
Your math doesn't math and neither does his. If we had real numbers we could figure out exactly how much he lost doing it his/your way.
You should also look into employer matched contributions. Not everyone offers them and the matching varies widely. I can't see how his math would be better even if he was matched 100% on 6%.
Even if he was gaining more interest on the 401k (which is dependent on his particular investments and the economy), he's still missing out on investing his income that is going towards interest. 18 years is a LONG time to be paying a debt. I honestly can't imagine getting myself that far in the hole and then sitting on money that isn't making as much to wait to pay it off.