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Lets say you own a car 100%. Would you say it is wise to take out a loan on that car to play the stock market? That's the same thing as what your are saying.
by tomohawk 9y ago
Lets say you own a car 100%. Would you say it is wise to take out a loan on that car to play the stock market? That's the same thing as what your are saying. What if the market goes south? What if your lose your job?
Debt represents risk that makes all of these other setbacks worse. It's better to get that off your back, then invest. If you have car debt, you should first pay that off, then play the stock market with your surplus money.
- DoubleCribble 9y agoHonestly, that depends on the interest rate spread. If I could get the same terms as a new car (let's say 1.9% on 60 months) during a boom economy/post-crash correction, I just might. Of course, you're never going to see that rate offered on a re-fi for a used car so this is purely hypothetical but as the saying goes, fortune favors the bold.