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If you need credit to buy stuff your problem is not going to be solved by going into debt. Tell me how buying a TV on a credit card is a leveraged investment.

If you need credit to buy stuff your problem is not going to be solved by going into debt. Tell me how buying a TV on a credit card is a leveraged investment. You know who gets rich? People who do not spend their money. And don't make it sound like "investment" is always a positive thing. many people are still paying for their "investments" from 2008.

kleinsch 4y ago
Investment or not, you’re claiming people should only buy cars and houses for straight cash? News flash - most of this country isn’t sitting in six figures of tech savings.
- FollowingTheDao 4y ago
  I live on disability and bought the van I live in with cash so do not tell me you need credit to buy a car. Housing may be the exception, but you do not need a good credit score to get a loan for a house. Banks do not make these decisions on credit score alone. https://www.ramseysolutions.com/real-estate/no-credit-score-no-home https://www.ramseysolutions.com/real-estate/no-credit-score-... What I am saying is that people should be spend less, save their money, and never going into any kind of debt, and ignore their credit score.
  - scarface74 4y ago
    Please don’t quote Ramsey. His whole mission is to funnel people into his high cost advisor and loan products. He also says that you should give 10% to the church while getting out of debt.
    - FollowingTheDao 4y ago
      Sorry, I don’t look at people with an all or nothing attitude. I disagree with Ramsey on so many things, specifically his greed, but he’s not wrong about the ability to buy a house without a ton of leverage.
      - scarface74 4y ago
        He very much encourages buying a house with 20% down. He just encourages you to do it through non standard underwriting criteria with high interest rates where he gets a cut.
scarface74 4y ago
So should people just wait to buy a house until they cab pay cash?
- TheOtherHobbes 4y ago
  Perhaps the economy should be structured in a way that allows people to do that without being forced into debt.
  - tristor 4y ago
    Perhaps it should... but it isn't. It's perfectly reasonable to believe that it should be this way, but it's irrational to behave as if it /is/ this way, when it isn't. The reality is that, at least in the US, it is a requirement for nearly everyone to have a mortgage to purchase a house and even for those who can afford to purchase without a mortgage it makes more sense to get one anyway since mortgage interest is usually lower than the rate of returns for other investments you would be keeping the cash in, and you get tax benefits both by not realizing gains to liquidate investments to buy a house and the interest for the mortgage is tax deductible via the mortgage interest credit program. Acting as if anyone is realistically out here buying houses in cash other than corporate investors / REITs, is silly. Even people on significant tech salaries are both better served and much more probably to have a mortgage even in LCOL areas.
  - scarface74 4y ago
    So how would you “structure the economy” to allow someone to buy a house without debt and that allows them to both save for a house and pay for some place to live while you are saving?
  - thrwyoilarticle 4y ago
    I work for an employer who pays me in arrears. They are indebted to me. They could pay me up-front, but then I'd be indebted to them. Maybe there can be a system where dollar bills slowly peel out in front of me as I do my daily work? Debt exists for a reason. It's more useful than cash.

kleinsch 4y ago

Investment or not, you’re claiming people should only buy cars and houses for straight cash? News flash - most of this country isn’t sitting in six figures of tech savings.

FollowingTheDao 4y ago
I live on disability and bought the van I live in with cash so do not tell me you need credit to buy a car. Housing may be the exception, but you do not need a good credit score to get a loan for a house. Banks do not make these decisions on credit score alone. https://www.ramseysolutions.com/real-estate/no-credit-score-no-home https://www.ramseysolutions.com/real-estate/no-credit-score-... What I am saying is that people should be spend less, save their money, and never going into any kind of debt, and ignore their credit score.
- scarface74 4y ago
  Please don’t quote Ramsey. His whole mission is to funnel people into his high cost advisor and loan products. He also says that you should give 10% to the church while getting out of debt.
  - FollowingTheDao 4y ago
    Sorry, I don’t look at people with an all or nothing attitude. I disagree with Ramsey on so many things, specifically his greed, but he’s not wrong about the ability to buy a house without a ton of leverage.
    - scarface74 4y ago
      He very much encourages buying a house with 20% down. He just encourages you to do it through non standard underwriting criteria with high interest rates where he gets a cut.

scarface74 4y ago

So should people just wait to buy a house until they cab pay cash?

TheOtherHobbes 4y ago
Perhaps the economy should be structured in a way that allows people to do that without being forced into debt.
- tristor 4y ago
  Perhaps it should... but it isn't. It's perfectly reasonable to believe that it should be this way, but it's irrational to behave as if it /is/ this way, when it isn't. The reality is that, at least in the US, it is a requirement for nearly everyone to have a mortgage to purchase a house and even for those who can afford to purchase without a mortgage it makes more sense to get one anyway since mortgage interest is usually lower than the rate of returns for other investments you would be keeping the cash in, and you get tax benefits both by not realizing gains to liquidate investments to buy a house and the interest for the mortgage is tax deductible via the mortgage interest credit program. Acting as if anyone is realistically out here buying houses in cash other than corporate investors / REITs, is silly. Even people on significant tech salaries are both better served and much more probably to have a mortgage even in LCOL areas.
- scarface74 4y ago
  So how would you “structure the economy” to allow someone to buy a house without debt and that allows them to both save for a house and pay for some place to live while you are saving?
- thrwyoilarticle 4y ago
  I work for an employer who pays me in arrears. They are indebted to me. They could pay me up-front, but then I'd be indebted to them. Maybe there can be a system where dollar bills slowly peel out in front of me as I do my daily work? Debt exists for a reason. It's more useful than cash.