Reply to Thread

Message

<blockquote data-quote="Dave70968" data-source="post: 3126825" data-attributes="member: 13624">Sure.&nbsp; 100% of bankruptcies being caused by debt is not equivalent to 100% of debts causing bankruptcy.&nbsp; Buying a house--even with debt financing--is a winning proposition (if you stay within your means) because you build equity.&nbsp; Eventually, the debt is paid off, and you have a valuable asset--something you never get with renting.&nbsp; To save enough to buy a house for cash, while paying rent, is a very difficult proposition.&nbsp; Not impossible, but difficult.Using a rewards credit card, and paying it in full every month, is debt, but it&#039;s debt without a cost (if paid timely), and with a reward.Businesses use debt financing all the time, even when they do have the cash on hand, because their return on the money exceeds the cost.Debt is not a bad thing.&nbsp; Irresponsible debt is a terrible thing, but debt can be a valuable tool indeed.</blockquote>

[QUOTE="Dave70968, post: 3126825, member: 13624"] Sure. 100% of bankruptcies being caused by debt is not equivalent to 100% of debts causing bankruptcy. Buying a house--even with debt financing--is a winning proposition ([I]if[/I] you stay within your means) because you build equity. Eventually, the debt is paid off, and you have a valuable asset--something you never get with renting. To save enough to buy a house for cash, while paying rent, is a very difficult proposition. Not impossible, but difficult. Using a rewards credit card, and paying it in full every month, is debt, but it's debt without a cost ([I]if[/I] paid timely), and with a reward. Businesses use debt financing all the time, even when they [I]do[/I] have the cash on hand, because their return on the money exceeds the cost. Debt is not a bad thing. [I]Irresponsible[/I] debt is a terrible thing, but debt can be a valuable tool indeed. [/QUOTE]

Verification