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|User Info||Ten Things Update 2012; entered at 2012-06-05 13:14:32|
Registered: 2008-10-10 Eagle Mountain, Utah
If you haven't completed that list -- especially including getting out of debt and having a solid reserve of at least six months of living expenses (and 12-24 months is better) -- it may well be too late.
I view "having a solid reserve" as being the highest priority now. Debt is now secondary to me. If one loses their income stream, then having made pre-payments in order to reduce the mortgage quickly won't help much. Also, those six months (or more) of savings need to be protected from creditors. Don't keep those savings in the same bank that holds the mortgage, car loan, etc. They can and will grab the savings!
In general, if anyone has debt it's time to downsize and eliminate it, not pay it down. Unload the underlying asset (house, car, boat, mistress, etc). Can't retire the debt by selling the underlying asset because it's underwater? If so, then it might be time for some serious introspection.