Consider the following situation.

A friend recently graduated from college. They scrutinized their budget and found they have an

extra $200/month. They are debating whether to apply the money toward paying off their credit

card debt or starting contributions to their employer's 401k retirement saving account.

They currently pay $100/month toward $3,000 in credit card debt at 18.99% interest. They have

~4 years to pay off the debt at this rate.

Option 1

aplying the extra $200/month will pay off the bill in ~ one year but delay the start of retirement

Option 2

They begin to save $200/month in their 401k, and their employer will match 50% of their

savings. (I.e., Employee puts in $200/month, the employer will put in $100/month)

Given this situation, what would you advise your freind and which

oiption? Why?