Is Debt Bad? No only bad debt is bad! Blog Discussion

Former_MSE_Andrea

This is the discussion to link on the back of Martin's "Is Debt Bad? No only bad debt is bad!" blog. Please read the blog first, as the discussion follows it.


Read Martin's "Is Debt Bad? No only bad debt is bad!" Blog

System

Another form if 'debt' that i refuse to class as a debt is a student loan. You are in fact investing in your future which can only be a good thing.

FaTB

My theory is -

It makes sense to borrow on an appreciating asset eg. A House (most of the time)

But borrowing on a depreciating asset makes no sense at all. eg. A Car.

Voyager2002

FaTB wrote:

My theory is -

It makes sense to borrow on an appreciating asset eg. A House (most of the time)

But borrowing on a depreciating asset makes no sense at all. eg. A Car.

Unless you need the car to do your job ...

Kevicho

A car is not an asset, for one it doesnt make you any money, it costs lots of money to maintain, tax etc and also its already halved in value by the time youve driven it home

FaTB

Yes I understand most people need cars for various reasons

But cars are an overhead, a liability !

...and I would do everything I could to avoid borrowing money to buy one.

I would also never buy new !!

at1_2

Isn't car bought for practicle purposes - like getting to work - an investment?
Without my car I'd be working in Tescos round the corner instead of getting paid more money to work somewhat farther away.