i will clarify.
the only debt i have is my mortgage. i could pay it off tomorrow if i wanted to. i would have to cash in some investments to do so. i am in a 3.125% interest fixed rate 30 year mortgage i took out in 2009 and i am only making the minimum payments. i owe about $30K on my house.i pay $650 a month in payments that include $400 a month in property taxes and $75 a month in homeowners insurance. i use the cash i would have sent to the bank and invest it in low risk investments that currently pay in the 6% annual range. i earn about $7,000 a year from these investments.
i use my cash back card DAILY and as often as i can. i pay the balance off in full every month and it pays me back about $100 a month for using it instead of only paying cash. the end of the month the result is the same as paying cash when i make the purchase..


if i only paid cash and i paid off my mortgage like you suggest i would LOOSE about $5,000 a year if you deduct my principal payments on my mortgage.

i will also add because i regularly use debt it keeps my credit rating high so i get a better rate in my insurance premiums than if i only used cash.