Reply #8: Your credit card debt will not remain at 5%. [View All]

[Common Sense Party]

It never does. You're probably paying more than that now, with all the extra layers of fees the banks slip in. You'd probably be paying 12% or higher before you know it.

Historically, the stock market has averaged about 10.5% annually. But that's over the past 80 years. That gives the market time to smooth out the huge dips from recessions and depressions. The market could go down 20% this year, and another 30% next year. Then where would you be? Still in debt.

Pay off the credit card debt and the student loan first. Take the $333 you were going to put toward the Roth, and instead attack the debts. You'll have those two paid off in no time. I wouldn't worry too much about paying off the mortgage in a hurry. If you get bonuses or windfalls, sure, send in some extra principal payments. But you have a good rate, you get a deduction for your interest, and you may need to get time and compunding working for you by starting a Roth as soon as you're out of debt.

How old are you/or how long until retirement?