Quote:
Originally Posted by ColdNoMore
Good article.
While minimizing revolving credit (ie: high interest credit cards) is almost always a good idea, someone would have to be pretty dumb to avoid all debt....while ignoring (or not understanding) 'opportunity costs.'
If I can use someone else's money at a low interest rate (1% auto loans/3% home loans/etc.), while my own investments are compounding at three to five times the amount of the loan interest...it would be dumb not to do so.
Given that most large corporations often borrow money, even when they have the cash on hand...should be a clue.
Opportunity Costs(poke here)
Then again, there are those who like to keep their cash under their mattresses...and believe they are financial genius' also.  |
Yes. There is debt and there is debt. That's why I have always taken advantage of "zero" finance deals on large appliances even though I always had the money to pay off in full. For us there was never the danger that we would blow the money. But not so for everyone. I don't think we've paid any interest (other than mortgage) in 30 or 40 years.