Originally Posted by
mcartier713
amen to Dave Ramsey.... but here's something I was thinking about today.
Ok, so assume someone is in X amount of debt now. That X amount of debt is a certain percentage of their income/net worth/whatever you wanna call it, right? Well, everyone talks about investing in your debt. Paying it off as soon as possible, etc etc. BUT, when you look at it as a percentage of income, it can be more costly to pay it off now than it would be to accrue interest over the months/year and then paying it off when you make more money.... sure it'll probably cost more in dollars in cents, but it wont hurt as much as far as a percentage of money is concerned.
as I'm typing this, I guess it would make more sense with someone younger like myself at 21 who doesn't make that much at the moment, rather than someone who has already 'topped' out.
any thoughts?
I understand what you are saying with regards to the numbers. Something else to consider is the sense of peace that comes with no debt on your shoulders. The value of this peace will vary from person to person, but as long as someone has debt they are going to need a source of income to cover that debt.