[68ZClone]

We've often discussed the Dave Ramsey approach at work. We're a bunch of engineers that take joy in maximizing everything, including approaching debt (it's a disease). I think most on this site are like minded.

Our conclusion, the Ramsey approach is geared towards people who are inherently not good with money and is a psychological approach to paying off debt. It is not the most effective (in terms of least amount paid) to pay off debt. However, it's a great motivator for people to see the payment go away.

Conclusion (in my mind), you have to make a decision. Are you the kind of person that will benefit from the psychological approach of eliminating individual payments? If so, the Ramsey approach is the one for you.

However, if you understand the principals of debt and that attacking higher interest (after taxes) debts first is more beneficial to your pocketbook, a modified approach is probably a better option. This allows you to take into account that earning 8% in the market on funds that would only offset debt at 3% is an okay thing.

Again, what motivates you as the individual. For me, it's optimizing. Others (like Greg has pointed out), it's the ability to sleep at night being debt free.

Just my $0.02!