Go ahead, knock it out
By Dave Ramsey Posted 10-27-2020

Dear Dave,

 

We make about $70,000 a year, and we’re debt-free except for our house. We’re following your plan, and just started saving for retirement, but we only have $15,000 left on our mortgage. We can have that paid off in six or seven months, so would it be okay to go ahead and pay off our home as soon as possible before continuing to save for retirement?

 

Nate

 

 

 

Dear Nate,

 

I’m generally pretty hardcore about sticking with the proper order while doing the Baby Steps. But in your case, with such a small amount left to pay on your home, I think I’d go ahead and knock that out.

 

Most of the people I talk to still have six figures left on their mortgages. There’s a big difference between that and the situation you two are in right now. Think about it, you guys could be completely debt-free by Christmas, and you’ve already started to make a move on retirement planning. I say go for it!

 

—Dave

 

* Dave Ramsey is CEO of Ramsey Solutions. He has authored seven best-selling books, including The Total Money MakeoverThe Dave Ramsey Show is heard by more than 16 million listeners each week on 600 radio stations and multiple digital platforms. Follow Dave on the web at daveramsey.com and on Twitter at @DaveRamsey.

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