[Monica]

You need to focus on knocking out your debt. Always, take the company match in your 401K. Always ask for a discount on medical bills. Sometimes, they will give you a discount if you can pay it off at once.

[Alan]

Ok – one thing you are missing is that you can’t catch up with Roth IRA – you get a set saving amount per year. The catch up is much later. Also many retirement have ERISA protections.

[Monica]

I would get rid of all my debts before buying a house. Home ownership comes with an entire new set of potential “emergency” expenses. Before you take that on, you want to have a strong financial footing in place.

[Mar]

Medical debt doesn’t count against you now due to new laws and many hospitals have payment plans at 0% interest. I have some too and pay a set amount each month while prioritizing long-term investment goals. Your wife is right.

[Julianne]

It’s always good to ask “where will I get the biggest return for my money?” If your medical debt is costing you more money than just the total, then consider repaying quickly (for example if it was charged on an 18% credit card). If not, it’s ok to take your time to pay it IF you don’t get behind where it ends up costing significantly more. The Roth is often a great investment because of the returns to come. A house depends but is traditionally a good return.

[Mar]

Since you are self-employed I’d save first and take medical bills as they come. I’d probably make sure I put what I can in a Roth and then dole out the rest to different buckets since the Roth can be used for a down payment on a house too. As long as the medical debt interest is low.

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