A few words of wisdom…

“Money is fungible, but a general guideline is to match the term of the debt with the useful life of the asset. A 30 year loan for a house. A 5 to 7 year loan for a car. Pay cash for lunch.” – Calculated Risk Blog

Well that certainly makessense. For those that live below their means, taking on debt is a choice and the length of that debt is something we can use to our advantage. Debt is not always bad… and in the right amounts and uses,can be very beneficial. I have gotten 0% financing on new carpet for 12 months and put the $5k in the bank for the year, I made my $140 bucks or so in interest and paid it off in full at the end of the year. 5 year car loan at 2.9%? Sign me up. 30-year mortgage at 4.75%??? absolutely, where are you going to get 30 year money for under 5%?

Financing clothes, vacations, etc… not such a good idea… these are short term unsecured items and as such you pay higher rates of interest.

Buy gold online - quickly, safely and at low prices

Comments are currently closed.