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[quote=Anonymous][quote=Anonymous]OP, I'm the "pay off your debt, Dave Ramsey" girl and one of the things he says really resonates with me: that a "targeted focus" on one project at a time will be far more rewarding (because you will see results) and empower you to stick with it. It's like 10% facts, 90% a mental game - if you target your focus at your student loans and blast them out, it will be far more rewarding, and effective, than spreading it out - a little here, a little there. It may end up being a net loss of some money, but I think in the end you may make more and here's why: if you aren't seeing much progress, if you look at the loans stretching out over a decade, you may lose steam. You almost certainly will. You'll spend more here and there, you'll charge more on your credit card, etc. If you target your focus at one thing at a time (for me it would be student loans first, down payment second, then start saving for college and retirement) you will see your results right away and it will motivate you to work harder and save more. I honestly believe this.

From a purely financial perspective, you are right that saving and investing will make you more. But I think that the reasons outlined above should make you think about the targeted focus approach. Good luck to you, again![/quote]
While this may be good advice for people who are in financial trouble, and/or have lots of different debts, it has limited use outside of that scenario.**  And OP most certainly is not in that group of people.  She's not in trouble - she is in excellent financial shape, but wants to tweak her approach.  She has one very large debt, but a "targeted focus" on that will have consequences elsewhere that, in my view, outweigh the benefit of getting rid of the debt in 5 years.

**This is my big problem with Ramsey and his more religious alcolyte, Michelle Singletary - the one-size fits all approach lacks nuance, and is ill suited foir many circumstances.  "Eliminate DEBT ASAP" may be a good rule of thumb, but it refuses to take extenuating circumstances into account.  OP, you don't preform surgery on EVERYONE patient you see, or take an X-Ray of EVERY chest, do you?  Of course not, and it's silly to pretend that myopic approach works in other walks of life.  [/quote]

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