Offer your thoughts or opinion on the input financial query or topic using your financial background.

Is it ever logical to not deposit to a matched 401(k) account?
Whether or not it is logical probably depends on individual circumstance.  When you take on (or maintain) debt, you are choosing to do two things: The first is clear. This is what you describe very well in your answer. It is a straightforward analysis of interest rates. The fixed cost of the debt can then be directly compared to expected return on investments that are made with the newly available cash flow. If you can reasonably expect to beat your debt interest rate, this is an argument to borrow and invest. Add to this equation an overwhelming upside, such as a 401k match, and the argument becomes very compelling. The second cost listed is more speculative in nature, but just as important. When you acquire debt, you are committing your future cash flow to payments. This exposes you to the risk of too little financial margin in the future. It also exposes you to the risk of any negatives that come with non-payment of debt (repossession, foreclosure, credit hit, sleeping at night, family tension, worst-case bankruptcy) Since the future tends to be difficult to predict, this risk is not so easy to quantify. Clearly the amount and nature of the debt is a large factor here.  This would seem to be highly personal, with different individuals having unique financial or personal resources or income earning power.  I will never say someone is illogical for choosing to repay their debts before investing in a 401k. I can see why some would always choose to invest to the match.