Inflation is another important factor. If the rate of inflation exceeds your debt's interest rate, for example, your debt is effectively shrinking over time jus

Inflation is another important factor. If the rate of inflation exceeds your debt's interest rate, for example, your debt is effectively shrinking over time just due to inflation. http://www.investopedia.com/terms/r/realinterestrate.asp http://www.investopedia.com/terms/r/realinterestrate.asp