I would add that it also hugely depends on what affect being in debt has on your behavior and spending habits. For many irrational people (such as myself) being

I would add that it also hugely depends on what affect being in debt has on your behavior and spending habits. For many irrational people (such as myself) being free and clear makes me much more defensive of my savings. Whereas if I'm on the hook to anyone, I feel a bit enslaved and say "screw it" way more often.