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.
Living in debt is living in slavery to someone else. Unless you can buy with cash, DON’T buy it!! A house is probably the only exception, but why TF someone would want to get into debt is beyond my understanding. Financial Peace is real and living in it is priceless.
Well I can make much more money investing and trading myself than any interest payments so it makes sense to keep the capital, make money with it, and have a monthly payment. Debt is often used to make money if done right.
I had a HELOC from 2007 to 2017 borrowing phase initially 2.74% went as high as 4%. was at 2.74 % when I paid it off in 2020. I used it and paid it back 4-5 times. Returned 14.57% and 18%, the other times I bought condos. I wish I could borrow 1 million at 2.74 %...
True, but make sure you can pay back the loan even if you lose everything on the stock market.