Mortgage interest is also tax-deductible, while personal loan interest is not. This makes the mortgage the last debt to pay off, not the first.
This does not affect 80%+ people, who are better off with standard deductions since 2017 tax cuts and jobs act.
In 2018, 87% did not itemize.
https://www.irs.gov/statistics/soi-tax-stats-tax-stats-at-a-...
This ignores the indisputable fact that if personal loan interest were deductible, fewer would be better off with the standard deduction.
I mean, if you eliminate all specific deductions, everyone will be better off with the standard deduction no matter how small it is. That doesn’t mean no one is impacted by the elimination of specific deductions, in fact, it means the opposite.
In any case, this doesn't change that wealthy people are likely not in a hurry to pay off their cheapest debt.
No, 80% percent are better off with the standard deduction than itemizing given the Trump tax changes (which include increases, like limiting the SALT deduction, as well as cuts.)
One might almost imagine that there is a reason that no one at all has said “lower income people are paying more” in this discussion.
But have fun beating that strawman.
Housing is also getting pretty bad. Essentially, the lower your income, the more you are expected to pay back to the bank since you can only put aside so much money for the mortgage each month.
A well-off person will pay his house as much as 2-3x faster than a 'poor' person, essentially allowing him to invest for the future at a much earlier stage in life.