SAJ-99
Well-known member
Interesting discussion. Lots of good points. To the OP, if you have extra money, pay off the debt with the highest rate. As @VikingsGuy said, there are different types of debt. Debt isn't a bad thing, but high interest rates are. You borrow in todays dollars and pay in future dollars. High interest rates means the future dollars might be more expensive than today. CC debt will be my choice if I get diagnosed with a terminal condition. Open up an account in my name and charge away. When I'm dead they can eat the financial loss because it doesn't transfer.
The main problem with housing is that the real median US household income has only grown at an annual rate of 0.65% over the last 37yrs. So if you add in inflation, which has been low as well, it is hard to save for a house that goes up in value even if you cut out buying coffee like Suze Orman suggests. On owning a house versus renting, if you can't budget to save for a reasonable down payment then you have problems because you will need to budget for repairs and maintenance - let's say 3% of the value of the home. Sure you only have to put on a new roof every 25-30yrs, but if you don't plan for that it will hit you like a brick. The major problems are those tweeter expenses, like a furnace or AC. They are small enough to put on a credit card at 15-20% interest but hard to chip away at once they are there. When something breaks at a rental you just call the owner.
It is good to see that the end result is an agreement that the answers to any financial question are very dependent on the individual.
The main problem with housing is that the real median US household income has only grown at an annual rate of 0.65% over the last 37yrs. So if you add in inflation, which has been low as well, it is hard to save for a house that goes up in value even if you cut out buying coffee like Suze Orman suggests. On owning a house versus renting, if you can't budget to save for a reasonable down payment then you have problems because you will need to budget for repairs and maintenance - let's say 3% of the value of the home. Sure you only have to put on a new roof every 25-30yrs, but if you don't plan for that it will hit you like a brick. The major problems are those tweeter expenses, like a furnace or AC. They are small enough to put on a credit card at 15-20% interest but hard to chip away at once they are there. When something breaks at a rental you just call the owner.
It is good to see that the end result is an agreement that the answers to any financial question are very dependent on the individual.
