[Hbkj89D2]

Originally posted by DanS
Let's put it this way. If you spent money on something frivolous, then it would be no better a purchase for having been paid from a flush bank account than if it had been paid by debt. If you're not going to repay that debt very quickly - which heavy debtors probably won't, then there'll be interest to pay - so its more expensive and hence worse.

[arcaniagainee]

Match the debt to the life of the asset. If you buy a car that will last you 10 years (many modern cars do), then it would be just fine to finance the car on a 10 year loan. I don't think 10 year loans are available for cars, so the 7 year loan would do in a pinch.

[Reftsheette]

Originally posted by Cort Haus
If you're not going to repay that debt very quickly - which heavy debtors probably won't, then there'll be interest to pay - so its more expensive and hence worse. Considering the time value of money, it's no more expensive.

[exettybele]

Many people don't do that, but that's the optimal way to do it. It gives you a clearer picture of your actual financial position. Most people (such as yourself) can afford to do it suboptimally, so it's no big deal in any event.

[defenderfors]

Originally posted by Flubber
Is it a good investment -- hell no-- but you could criticize it as consumption with marginal value over other possibilities whether or not debt is incurred. The interest rates you can get are very small-- heck the highest interest rate I pay on ANYTHING right now is less than 5 %. Why pay someone interest, when they could be paying you interest?

These last few years apart from a little hiccup or two have seen remarkably good returns in the stock markets!

[rarpAcconavox]

Originally posted by MOBIUS


Hey, nothing wrong with that!

Credit cards are GOOD - as long as you have the discipline to use them correctly... I get paid twice a month and I clear my card EVERY payday-- its a very simple system

[TypeTeasiaDer]

Originally posted by Flubber
Yes and thats part of the reason I invest my income and will take a small debt to buy a car. MY earnings on my investments generally exceed the interest you pay on something like a car Exactly why my mortgages are interest only with the balance of what I would expect to pay on a traditional repayment mortgage being ploughed back into investments.

[Paiblyelaxy]

Credit Cards

Credit Card Debt (carrying a balance)

-Arrian

[gamblingstats]

Or 0% periods can be quite handy