Paying off debts first doesn’t seem like a first principal to me since there’s contexts where that’s not the right move. There’s too much nuance to managing debt to generalize it that way I think. If the interest rate is below inflation would be the obvious example. All those people who bought houses or refinanced a few years ago are not better off paying down their debt first when they could be investing that money instead. I think a more defensible first principal would be something about paying down debt faster the higher the interest rate is on the loan.
Don’t gamble with the rent money.
Pay off all your debts first.
Don’t put all your eggs in one basket.
Use a discount broker like Vanguard or Schwab.
(all tried and true platitudes)
Paying off debts first doesn’t seem like a first principal to me since there’s contexts where that’s not the right move. There’s too much nuance to managing debt to generalize it that way I think. If the interest rate is below inflation would be the obvious example. All those people who bought houses or refinanced a few years ago are not better off paying down their debt first when they could be investing that money instead. I think a more defensible first principal would be something about paying down debt faster the higher the interest rate is on the loan.
You are making huge assumptions about an individual’s math skills, impulse control and the ability to stay the course over decades.
The size of Suze Orman and Dave Ramsey audience would imply to me that you are wrong about that.
People have lives and limited time to focus on math and finance, I would definitely pay off the debt.