For Reasons 0 and 1 to apply, you've got to not yet have enough of a cushion to make you feel comfortable and the credit line is (or might) go away as you pay off the debt. The second condition is usually true, I guess, but the first might not be.
If you view debt as negative savings, then paying off debt is savings, habit and all. So I don't see Reason 2.
I can't argue with Reason 3, except I doubt the benefit outweighs the difference in interest rates between potential savings and extant debt for most people.
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timeasmymeasure
Re: Your thoughts? (just curious)
Date: 2008-12-29 08:35 pm (UTC)If you view debt as negative savings, then paying off debt is savings, habit and all. So I don't see Reason 2.
I can't argue with Reason 3, except I doubt the benefit outweighs the difference in interest rates between potential savings and extant debt for most people.