I guess I’d look at it from a standpoint of what the effect of current interests rates are now. Would it be preferable to refinance your home loan, or use your cash and borrowing at generous terms to do other things?
My inclination would be to ‘refinance’ the debt at a better interest rate. To me this frees up money that comes in which is already sequestered for debt service, in effect increasing the spendable income government gets from taxes. Alternatively, I guess one could rationalize that taking the realized increase due to refinancing and channel it into some purchase that has tangible value.
You aren't talking about your house or car. This is government debt. So how would your refinance work?
“My inclination would be to refinance the debt at a better interest rate.”
It’s at near zero now.