Originally Posted by
Verdell
All valid and reasonable. I guess my point is that sometimes lack of liquidity can be helpful. If cash is harder to access, it's harder to spend haphazardly. I'm certainly not attempting to argue against mathematically correct and/or disciplined approaches. I would say that taming the impulse of spending by immediately directing discretionary cash to pay down debt can be, and often is, helpful.
This is one reason that Dave Ramsey's approach is so successful even though it is not the mathmatically superior answer. Behavior is a key component of personal finance.
Small wins from paying off small balances build good habits that carry thru to larger debts. Locking up net worth in a paid off personal residence prevents spontaneous spending.