Reply #4: Wrong. You need to figure what savings will pay

[Warpy]

and these days even CDs are paying in the 2% range, plus consider inflation, which we all know is really in the double digit range. Putting money into a 2% account is losing money. The only caveat is that you do need at least a 6 month's savings cushion in case your job goes belly up and you have a tough time finding another.

Paying off a mortgage is like giving yourself that much interest every year that you've knocked off the mortgage.

In addition, the sooner you can get out of debt before you hit that early involuntary corporate retirement age of 55 the better off you'll be in the long run. Ageism laws are not enforced and most employers look for ways to rid their rolls of employees who are starting to make their health insurance rates go up. They have actuarial tables to tell them the break even point between inexperienced young workers and experienced older workers and you'd better believe they'll use them on you.

Debt is poison, no more so than in an economy going sour. Getting out from under it is the best gift you can give yourself.