maddythebeagle
Thinks s/he gets paid by the post
- Joined
- Jun 15, 2005
- Messages
- 2,450
I dont know if many here have heard of Dave Ramsey, he is a money talk show host that I guess is mostly on Christian/Conservative radio. Well, anyway, from his life experiences he was highly leveraged on a lot of property and had to sell a bunch to pay the bank back and went broke. I think he spent way about his means, also. Now is selling books and seminars.
Well, anyway, he has this idea that just about all debt is a bad idea and thinks people should even pay off the low interest debts (student loans) and only use cash to pay for stuff.
I tend to agree with him somewhat that debt for consumerism is pretty dumb, but it seems to me that low interest debt isnt a big deal esp. if you can use that money to increase your net worth. (i.e. why pay off low interest tax deductible student loan debt when you can contribute more to a 401k, etc.). Maybe most folks really dont have enough discipline? I dont feel that my use of a credit card makes me spend more and use as a tool and LBYM easily. Anyway, considering JG has over 100k credit card debt and flips in his ING account, I suspect that most FIRE's dont have a problem with credit or it causes them much stress?
Well, anyway, he has this idea that just about all debt is a bad idea and thinks people should even pay off the low interest debts (student loans) and only use cash to pay for stuff.
I tend to agree with him somewhat that debt for consumerism is pretty dumb, but it seems to me that low interest debt isnt a big deal esp. if you can use that money to increase your net worth. (i.e. why pay off low interest tax deductible student loan debt when you can contribute more to a 401k, etc.). Maybe most folks really dont have enough discipline? I dont feel that my use of a credit card makes me spend more and use as a tool and LBYM easily. Anyway, considering JG has over 100k credit card debt and flips in his ING account, I suspect that most FIRE's dont have a problem with credit or it causes them much stress?