Ask yourself this question. If interest rates are low, should you borrow if possible? The answer is clearly yes.

If interest rates are low, should you repay debt? The answer is no.

Why, then, is the rate at which people are trying to clear debt increasing? The answer is twofold. Firstly, the banks are encouraging it, because they want to reduce the risk on their balance sheets. Secondly, in times of recession, people worry about their jobs and so want to reduce debt.

However, when debt is cheap it's best to use it to build wealth. If the stock market has grown by nearly 40% since March, why repay debt where you are paying 1%, 2% or 3% when the money could have been invested?

The problem is that we can not be objective about our own wealth. We get too emotional and do the wrong things. It is the reason why most people lose money with their investments. For every winner there is usually a loser, and unless we are objective, we will be the loser.

And so, in thinking about your money, your debt and your wealth, try to think objectively. Try to avoid emotion. Try to avoid following the crowd. Instead, think objectively, or get someone who knows what they are doing to work with you to help you maintain your objectivity.