Best way to avoid debts

[Deleted User]

Learn to say NO!

studentphil

So debt most often comes from buying things you do not really need?

iolanthe07

A 10k MBA does not give you a magic ticket to a well paid job-- so I still think they are a big risk.

My son borrowed 15k to work for his MBA and I thought he was potty. He now earns in excess of 100k pa and is not yet 30. So who was potty? (He's my pension plan btw!!! lol).

studentphil

iolanthe07 wrote:

A 10k MBA does not give you a magic ticket to a well paid job-- so I still think they are a big risk.

My son borrowed 15k to work for his MBA and I thought he was potty. He now earns in excess of 100k pa and is not yet 30. So who was potty? (He's my pension plan btw!!! lol).

Lucky for some, but that is not true for everyone with an MBA

southernscouser

studentphil wrote:

So debt most often comes from buying things you do not really need?

Or debt comes from things you can't really afford!

I know I'm gonna sound like Martin here but he is right. Debt isn't bad. Bad debt is bad. If you can afford it, sourced it out as the cheapest way possible and is for something you really want (doesn't have to be what you need) then whats the problem?

studentphil

southernscouser wrote:

Or debt comes from things you can't really afford!

I know I'm gonna sound like Martin here but he is right. Debt isn't bad. Bad debt is bad. If you can afford it, sourced it out as the cheapest way possible and is for something you really want (doesn't have to be what you need) then whats the problem?

Okay, question is, how do you know what is good debt for you?

janiegs

studentphil wrote:

Okay, question is, how do you know what is good debt for you?

In spite of my own problems, our house finances are ok, so for instance buying things that you have the money for on interest free credit can be ok. Our baby's furniture was £300. We had the money in the bank, so it was ok to buy that interest free over 6 months and just pay it off.

It's a bad idea to buy something on interest free credit that will wear out before you have paid it off!

I have an Amex card that gives me Nectar points. I pay that off religiously (I use it to buy diesel for the car). Last month we had two free bottles of rum on the strength of nectar points collected, so it is ok to use a credit card to gain a reward/incentive maybe if you are completely sure you will pay the balance in full when you get the bill.

southernscouser

studentphil wrote:

Okay, question is, how do you know what is good debt for you?

I explained that in my previous post Phil!

studentphil

southernscouser wrote:

I explained that in my previous post Phil!

Yes I know!

But what do you class as affordable?

southernscouser

studentphil wrote:

Yes I know!

But what do you class as affrodable?

It's different for everyone Phil! You take into account how much money you have left over/save each month and work it from there!

Do you have debt concerns or is this just an excuse to spread your wings and start threads in other boards?