That for every dollar I give away to the bank, I might avoid paying somewhere between 10 and 35 cents to the government has got to be the stupidest thing I've ever heard***. It's like a woman who spends the day shopping for shoes and only calculates how much money she saved. If you saved so much money, where is it?
Now, perhaps if you have to choose between paying credit card debt and and mortgage, the mortgage is the lesser of two evils. And perhaps if you have some relatively risk-free investment that is paying you more than you're paying in interest (especially if it is in a tax-deferred account), then that might be a better use of the money. But paying interest just for the sake of paying it is idiotic.
But perhaps we should not be too hard on financial advisors, because there is a method to their madness, or at least to their training:
When you begin a career as a Financial Advisor, you might want to work for a financial or insurance company or a bank... Once you get experience, you can become self-employed. About a third of all Financial Advisors are self-employed...It would be uncharitable to say that your financial advisor thinks you ought to have debt because that's in the best interest of his immediate employer. But it's probably not inaccurate to say that those who trained him - whether bank or financial company - trained him to see the world the way they want to see it. That world is not full of financially independent people. It's full of people with big houses and bigger mortgages, telling each other that paying interest is the road to happiness.
* Thankfully it's not so much now that they are no longer getting "rich"** on real estate.
** even broker.
*** It was after hearing this for the dozenth time that I firmly concluded that most people simply do not listen to themselves.