Dos
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| Debt or no debt? |
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Robert Kiyosaki suggested that it is ok to have debts as long as it is good debt and not bad debt.
Dan Kennedy, however, believes in getting and staying debt free for practical purposes. He mentioned about the psychology of attracting wealth by feeling wealthy at your core (not indebted) and by feeling and being independent.
What do you believe? Any thoughts on this?
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Sat Nov 05, 2011 4:11 pm |
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littleroc02us
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Because I am debt free except my mortgage which I'm working on, I find it's quite easy to save up for items such as cars, furniture and trips because I don't have my cash tied up in payments. For example, my wife and I are saving up for a car right now where it won't take but a few months to save up 10k plus the sale of her car and will pay cash and continue to stay out of debt. I've been on the other side where I had credit card debt and I borrowed money for everything, I didn't like it much and I will never go back.
Risk comes from not knowing what you're doing. (Warren Buffet)
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Mon Nov 07, 2011 2:24 pm |
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oldguy
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I'm in coaster's camp, I use net worth as my measure of wealth.
"Debt is bad because it is bad" is almost a religion with some - there is the Dave Ramsey Show, Dan Kennedy, RK, etc. Of courser, if you are talking about credit cards and consumer revolving debts, they are 'bad' - they are bad becasue the money was borrowed for the wrong reasons. Ie, the "I want it now" problem as opposed to earning the money BEFORE you spend it on wants.
But "debt free' is not really a goal, high net worth is the goal. And you can build NW by using borrowed capital.
And risk management is the key tool to using capital to earn more capital. Eg, when I borrow an extra $50,000 on a rental house, it costs about $108,000 over a 30 yr period. I invest the $50,000 in an 11%/yr index fund for 30 yrs and it grows to $1,145,000. Obviously there is risk that needs to calculated and managed, no one will just give me $1,145,000 for investing $50,000.
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Tue Nov 08, 2011 3:34 pm |
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hermans25
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Mostly people can not handle this all and they lost their credit score.
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Fri Dec 02, 2011 7:51 am |
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jennquilter
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Coaster said it all here 
I laugh everytime I hear someone try to argue about whether or not it's good to have debt and such, because I mean... do you want to owe people money, ever? Nooooo.... does it sometimes pay off in long term planning? Obviously....
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Sun Dec 11, 2011 3:56 am |
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Sanderson
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| personal injury attorneys |
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According to me Debt is a short animated documentary film by Canadian artis and filmmaker Paul Grignon about the monetary systems practiced through modern banking. The film presents Grignon's view of the process of money creation by banks and its historical background, and warns of his belief in its subsequent unsustainability.
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Thu Dec 15, 2011 11:09 am |
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Richard17
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| Is there any way to avoid debt loans? |
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People are now largely focused on saving cash because of the instable econimic situation raging all over the world. Despite of the fact that, lots of people are very suspicious to using existing borrowing systems, some disasters still make them apply more and more for additional funds. And thus, as we see, demands generate offers.
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Tue Dec 20, 2011 1:46 pm |
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oldguy
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quote:
People are now largely focused on saving cash because of the instable econimic situation raging all over the world.
I think the opposite is true. In an unstable monetary situation, I want to have big loans with a 30 year, low interest pay back. That puts the burden on the lender to collect from me - and it almost certainly allows me to pay the loan back with cheap money in the far future. Right now I don't want to be the lender, I want to be the borrower.
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Tue Dec 20, 2011 5:17 pm |
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robmejia
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How can there be such a thing as good debt? A debt is bad no matter how you look at it.
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Wed Dec 28, 2011 5:11 am |
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KatherineLee88
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quote:
Originally posted by robmejia
How can there be such a thing as good debt? A debt is bad no matter how you look at it.
Refer back to oldguy and coaster.
Consumer (credit card) debt = bad
Borrowing money from banks at super low rates and profiting from it over time = good
Student loans = good (in my opinion, unless you majored in something that is hard to get a good job in)
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Mon Jan 02, 2012 2:28 pm |
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