Iowa | bulldog - 11/14/2012 04:23
that 75% of the posters on hear were on cash, no proof of the percentage on my end just gut feeling how everyone reacts when borrowing comes up.
I can only speak for myself, what I have seen others do, and what works for me: Debt isn't a problem or hindrance, but "dumb debt" is. Such as vehicle payments, consumer debt of any kind (such as credit card debt, debt on a TV, etc) Debt agreements entered into because you can MAKE MONEY by doing so, with a sharp pencil and a cautious attitude, is the BEST TOOL in the world! Debt taken out currently just because the interest rate is low is DUMB as well. I don't care if the interest rate is ZERO, you still have to find money in the future to pay it back. All low rates do is make it possible to fund ventures with a lower ROI than could have previously be funded.
To me, that's they key--using debt to fund business ventures after doing one's best to analyze the ROI of the venture. Debt on a new/newish pickup? Put a nice vacation on the credit card and not paying if off 100% when the first statement comes? Dumb, it will hold you back at some point, I guarantee it.
And--FIX THE RATE!! most troubles in the 80's were from huge increases in interest rates on variable-rate loans. |
cash ?
