Honest question: With inflation continuously rising, would it be smart to take on a little debt now?
With inflation rising, supply chains still being a mess which makes obtaining goods more difficult, and things only getting more expensive, it seems like a sound decision to take on a mortgage or a car payment now as opposed to in the near future when things will only be more difficult to obtain and more expensive. Inflation will outpace any interest on loan. Resale value of some of these big ticket items will only go up.
I'm not saying go out and buy unnecessary things, but I'm genuinely curious what your thoughts are on purchasing big ticket items of need or investment purposes now as opposed to 2 or 5 years from now.
Yes generally with inflation if you take on debt the cost of that debt lowers relatively over time assuming your wages rise with inflation and/or career path etc.
However, with the coming antipated hyperinflation it's not gonna matter if we don't have jobs, taking on more debt is an obvious risk....
Personally I figure we're coming up on some kind of nexus one way or the other so I'm just kind of rolling with things, want to get a new car before shutoff devices are in place in 2025 or whatever (and while all-gas engines still available)....