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Pretty sure many in the middle class do the exact same thing. That's the whole idea behind mortgages, auto loans, etc -- to fund consumption on credit and pay t
by rsj_hn 5y ago
Pretty sure many in the middle class do the exact same thing. That's the whole idea behind mortgages, auto loans, etc -- to fund consumption on credit and pay the interest with income.
- throw0101a 5y agoFor the middle-class, the closest would be a home equity line of credit (HELOC). Reverse mortgages are also a variant of this. Generally though, most 'middle-class loans' have an end date.
- deleted 5y ago[deleted]
- rsj_hn 5y agoI think a lot of middle class people roll over their debt, too, no? Say buying a new car when the warranty expires on the old car. Or buying a new house every 10 years (US average). But I don't feel like digging around SCF data, so this is just a hunch. Having said that, my hunch is that middle class households are much more indebted than wealthy households.
- taeric 5y agoI think an easy argument can be made that the standard home and car loans are the same. In spirit, payday loans are exactly the same. Difference is just the volume of money and when the term is due.