When Paying Off Debt Is Bad Idea

From MSN Money Central

We have less equity in our homes and bigger balances on our credit cards than ever before. Bankruptcies continue to hit new highs, foreclosures are setting modern records and a big chunk of our disposable incomes pays for stuff we bought long ago.

Could anyone sensibly argue that now is not a good time to pay off your debt?

Yes, and that person is me -- the one who is usually telling you that debt is Financial Enemy No. 1 for many Americans. I haven't changed my mind about the importance of getting, and staying, debt-free. But I've seen enough examples of people who are taking the wrong approach to paying off their debts, and doing more financial damage to themselves in the process, that it's time to speak up.

Here are some examples of when it's not good to pay off what you owe.