It's not always good to eliminate debt. Personally, I don't like having debt, but in financial terms, sometimes it's good to have it and sometimes it's not. If you invest and get a return higher than the cost of the debt, you're leveraging your capital and improving your overall rate of return (that's the banks' secret). If the debt is financing expenses or you're getting a low rate of return, it's better not to have the debt. Saving alone isn't enough. It has to be channeled into investments to be effective. Saving is the first step, investing the second; that's how it works.