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What you're describing isn't an open line of credit though. It sounds like you took on that debt in as a calculated risk to help pay for a one-time expense that
by _heimdall 3y ago
What you're describing isn't an open line of credit though. It sounds like you took on that debt in as a calculated risk to help pay for a one-time expense that was a luxury rather than a necessity.
I was replying to the scenario of having a credit card to pay for an unexpected expense that otherwise couldn't be paid for. That's extremely helpful in the short term, but risky long term since presumably if it couldn't be afforded before its that much harder to dig out from under the new debt.
I wasn't meaning to argue that debt is always bad. I may have just explained myself poorly if it read that way.
- rahimnathwani 3y agoI think we're looking at things in a similar way. The key point of differences I think are: 1. Car repairs are capex, even if their exact timing is unexpected. 2. When it comes time for a car repair, you may not have time to apply for a loan specifically for that purpose. In that case, a credit card is a reasonable choice. Perhaps car repair costs are predictable over 1 year, but not over 1 month. It's sad that: - many people can't distinguish between using debt to fund an investment in the future, and using it to fund current expenditure - many people in the US live in places that aren't dense enough to make public transport viable
- _heimdall 3y ago> many people in the US live in places that aren't dense enough to make public transport viable Well that's for damn sure. We (collectively) never should have allowed our society to bake in an assumption that everyone will have access to a personal vehicle. A huge majority of the US is extremely difficult to live in unless you (a) own a reliable vehicle or (b) are okay with being largely self sufficient and living a hyper-local lifestyle.