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When is it okay to go into debt?

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8 Comments
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Brian Valentine
2 years ago

My wife and I agree that only our house mortgage was ok for borrowing. We would rather bite the bullet and pay cash for all other things.
Now the mortgage is also paid off because we paid multiple lump sums to be able to leave an industry job and work in the Not for Profit arena. Lower salary but lots of extra satisfaction.

R Quinn
2 years ago

I agree, a home mortgage is the only reason to carry long term debt, but it’s a good thing most people don’t agree, because without credit buying the economy might shut down. 🤑

Carl Book
5 years ago

Avoid auto loans, if possible. If you need to borrow to buy a new car, you may not need to buy a new car. It is a rapidly depreciating asset.

Mike Zaccardi
5 years ago

Certainly. Debt is not the root of all evil (neither is money, for that matter). Taking on debt for education and when buying a house is absolutely fine. For the riskier folks out there, taking out loans to fund your business is great too. It’s debt that has no plan to be repaid that is the problem. Everyone borrowing money must be intentional about using the money to better one’s life or for responsible enjoyment, but also have a path to pay it down.

Carl Book
5 years ago
Reply to  Mike Zaccardi

I think you need to qualify the advice about student debt. We have too many students borrowing too much money with poor prospects of being able to repay the debt.

johntlim
5 years ago