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Your parent is probably thinking about leveraging the grace period. It's a useful strategy that lets you pay for an unexpected expense & liquidate assets at you
by ip26 8y ago
Your parent is probably thinking about leveraging the grace period. It's a useful strategy that lets you pay for an unexpected expense & liquidate assets at your leisure, instead of needing to sit on large quantities of low-return liquid assets.
This strategy does require strong discipline, but I agree with your parent, I find it is a very useful tool.
- lotsofpulp 8y agoYes, that makes more sense, I probably assumed incorrectly.
- ip26 8y agoIt also depends on the context of where you live, I do believe in some countries there is no grace period, in which case this doesn't really work as well and you would be right to say it's not cheap at all!