"Sitting Pretty"..., possibly but the facts are that most folks with little or no debt are retired and, unless they "locked in" high interest rate bonds (which haven't been redeemed yet), the return on their savings is not positive after taxes. I know folks whose entire retirement nest egg was in stocks which are down 60-70% due to their fallen for "expert advice".
Other folks who were very conservative, had their nest egg in money market accounts (now yielding 1-1.2%) and short term CDs (now yielding 2-3%) as opposed to 5-8% when they retired. Needless to say, with state/local taxes going up and all manner of services going up at annual rates of 4-7%, even these very conservative retirees are well behind the curve!
0% financing on autos and furniture and plummeting prices on ever more sophisticated electronic gizmos does nothing to help you when your monthly "net" keeps decreasing!
Reducing or eliminating one's debt is certainly good but it won't leave you sitting pretty, it will only leave you relatively better off than facing "official deflation" in a real inflationary situation while struggling to pay debts!