3 ms·
Do the rich have to pay interest on their debt, or is it just me who has it on his mortgage? I tend to avoid taking loans because of the riscs and because of in
by MichaelMoser123 8y ago
Do the rich have to pay interest on their debt, or is it just me who has it on his mortgage? I tend to avoid taking loans because of the riscs and because of interest, why do the rich take up this debt?
- benmanns 8y agoGenerally you take out a loan at X% if you have some opportunity that will pay back >X%. Also, loans can help with liquidity. I'd rather have $1,000,000 cash and $999,999 in debt than $1 to my name. You can work with a million dollars in ways you can't with $1, even if your net worth is the same.
- TheCondor 8y agoEveryone pays interest, the rich just pay less because they are less risky.
- deleted 8y ago[deleted]
- mathattack 8y agoA rich person might rather buy 5 houses with a 20% down payment and 80% debt rather than 1 house with cash.
- Confusion 8y agoOnly if those houses make them money or their money yields more than the debts cost.