Debt is Wonderful

[Let’s Talk Debt No.50665742]

The wise know that debt is a powerful tool to grow your networth and enable you to enjoy life. Debt can also destroy you if used incorrectly.

Discuss your debts, (not down payments)
>130k Mortgage taken in 2016 (10yr/1.8apr)
>30k new car loan taken in 2020 (5yr/0.5apr)
>32k new car loan for wife taken in 2021 (2yr/1.8apr)

[Let’s Talk Debt No.50665783]

>>50665742
Just payed cash for this one, but for larger purchases debt can allow you to invest in avenues with larger return than the cost of debt.

[Let’s Talk Debt No.50665796]

[Anonymous No.50665854]

>>50665742
>Be careful to use debt correctly!
>Two new car loans

[Anonymous No.50665871]

>>50665854
Kek.

[Let’s Talk Debt No.50665893]

>>50665854
yes, new car loans are excellent terms for buyers with good credit. better than used car loans- and you get a nicer vehicle. The terms are more favorable because they are for higher amounts usually and buyer gets hit with vehicle depreciation…BUT, if you can afford the car, and like it enough to keep it long term, this is a great move. I’m here to educate.

[Anonymous No.50666165]

>>50665854
>>50665871

Here is how it works:

I could have bought both those vehicles for cash instead of financing, but instead I invested that 62k over the past two years with decent returns.

Those returns FAR outweighed the total cost of taking this debt.

[Anonymous No.50666256]

Debt is a core part of finances for almost everyone on /biz/ , but no one will discuss their debts? Confess /biz/ , what kind of debt are you hiding?

[Anonymous No.50666263]

terrible advice

get fucked glowie.

[Anonymous No.50666298]

>>50666263

[Horace !!+DKKnrpHVOf No.50666409]

>>50665742
Debt is only wonderful when you're buying assets with it, not liabilities. A house and cars are liabilities if you're using them.

[Anonymous No.50666496]

>>50666409
I disagree- Debt for house and cars is also good, if you choose to purchase within your means. I don’t know why people can’t understand this. You can earn better returns with your money on the right loans, even for liabilities. It can especially be lucrative on the house you live in if you make the right deal.
Right now we are not in a good period of new debt access- this is a time to save in order to acquire favorable new debt in the future. It may take a while , but rates will come down again after inflation slows.

[Anonymous No.50666531]

>>50665893
>afford the car

[Anonymous No.50666604]

>>50666531
This guy is an idiot, if I had paid full in cash (which I could have) , I would not have been able to invest that capital and receive returns.
He is right about the networth piece- your households vehicles should certainly not total more than half your annual income.

[Anonymous No.50666606]

>>50666165
Holy fuck this is embarrassing
No one wants advice from some 400k net worth PLEB
go touch grass and come back here when you get to midseven figures

[Anonymous No.50666636]

>>50665742
>wants to talk about debt and finances
>bought not 1, but 2 NEW cars
>tripfags so everyone can follow along with his stupidity because he misses upvotes
>gets bunch of replies

The absolute fucking state of this board

[Anonymous No.50666642]

>>50665893
And its feels so fucking good AUUGGHHH my tacoma so shiny ah im TACOOOMING

[Anonymous No.50666722]

>>50666606
We will be into seven figures in the next 5 years, before this mortgage is even paid off. We are young, my wife still finishing her phD, our networth is fine. I think the median 20 year olds networth is 8k, avg/80k

I’d rather be slower into 7 figures and have nice cars, travel to Europe with friends, etc.

[Anonymous No.50666762]

My debt is zero
if you have debt you are a slave to the jew and deserve death along with them.

[Horace !!+DKKnrpHVOf No.50666782]

>>50666496
Do a cash in cash out analysis of buying versus loan financing, it will become clear to you that you're not signing up for a better deal. It's not lucrative to buy anything if you can get better returns on something else. You shouldn't be buying, you should be renting and leasing. The cost of debt is much higher than the cost of renting and leasing and investing the difference. The equity in your house doesn't matter because it compounds at a lower rate.

[Anonymous No.50666872]

>>50665742
None. I'm to risk averse to take on debt.

[Anonymous No.50666878]

>>50666722
Never gonna make it
Phds are for stupid people unironically
Travelling is a meme
Go take out another car loan you absolute retard

[Anonymous No.50666914]

>>50665893
>Lights on during the day
Comfy, but not enough sunlight

[Anonymous No.50666920]

>>50666782
Take just the car loan-the sum cost of interest payments on this 5 year car totals less than a thousand dollars. It’s almost nothing.
>>50666762
So you paid for your house in cash? Or are you a tenant of a landlord(homeless)?


The returns I’ve gotten from investing that saved capital, just the portion lent, is already well over ten thousand in just two years. I suppose I could have leased but I prefer to own my own things, the cost differential is minimal if I’m keeping the same vehicle for 6-8 years. It also shifts in my favor if I choose to keep them longer.

[Anonymous No.50666946]

>>50666878
Shitbox driver detected

[Anonymous No.50666947]

>>50665796
>That fucking around budget

[Anonymous No.50666957]

>>50665742
forbidden knowledge op, even the richest of the rich owe somebody something

[Anonymous No.50666956]

>>50666920
Leasing a car is always better than getting a fucking loan
You're an idiot
Thread hidden

[Anonymous No.50667019]

>>50665742
Damn how did you manage such low interest on your car loans? Did you do some crazy negotiating or is that just the perk of a insanely high 800+ credit score?

[Anonymous No.50667054]

>>50666947
mostly the fucking about budget is for buying crypto , but in the past also for vacations, rolex, motorcycle, whatever. Fuck cunts who say don’t spend any money.

[Horace !!+DKKnrpHVOf No.50667067]

>>50666920
>Take just the car loan
You still bought equity in the car, which is a liability, *and* paid money for the money you spent to buy equity in the car which is worthless. This is all wasted money because you could have leased those cars and invested the money that you didn't pay for plus the money that you didn't buy car equity with. This would be very clear if you opened excel and did a cash in cash out analysis of both decisions.

[Anonymous No.50667088]

>>50667019
It was also just April 1 2020.

[Anonymous No.50667187]

>>50666946
Bought car in cash get fucked

[Anonymous No.50667229]

>>50667067
It’s not wasted money and the car is not worthless, I could even still sell this car when it is ten years old. Benefit would be 5 years with no payment.
The lease would have cost me 454 a month
The loan is instead 567 a month, and I get the option to keep for more years as owner if I choose, and get the benefit of reselling whenever I want to net more than the savings from leasing. leasing only seems favorable if you really want a new car every couple years.

[Anonymous No.50667243]

>>50665796
what app or program is that?

[Anonymous No.50667256]

>>50667187
God i fucking hope so if it’s shit. Was it this one?

[Horace !!+DKKnrpHVOf No.50667307]

>>50667229
Let's make this clear.
You paid money for money to buy something that depreciates. Leasing is tax deductible, equity is not. I don't know how to make it more clear to you... Never mind the added cost of maintenance...

[Anonymous No.50667341]

>>50665742
OP is some kike trying to get poor biz anons trapped in debt for the rest of their lives.
No one is falling for your Jewish tricks OP.
Go take out another car loan and then drive off a cliff you fucking faggot.
>>50666165
>>50666606
lol this.
OP isn't even rich, he's just a posing faggot.

[Anonymous No.50667386]

Is having at least some kind of long term debt better for your credit score? I hate carrying debt when I don't have to, but I've been hardstuck 790 credit score for 5 years now. Only had a small car loan which I paid off a few months ago and whatever stuff is on my credit cards (which gets paid off in full every billing cycle). I'd really like to bust through 800 but the credit score scumbags make it so opaque.

[Anonymous No.50667391]

>>50667307
Nothing you’re saying is wrong, I’m just pointing out the cost of borrowing within your means is actually very small, and the savings from leasing is negligible, especially over longer periods. you can always resell your owned vehicle.

I guess I’m not sure sure on the maintenance piece but I thought you'd be responsible for any maintenance and repairs laid out in your lease contract.

Unrelated pic from a commute a couple weeks back. Thankfully nothing scratched my sexy new car.

[Anonymous No.50667499]

>>50667386
taking out a mortgage improved my credit score some; but mostly it improved just over the last year as our income climbed from 118k to 145k , and we started keeping 30k on hand in our bank accounts.

[Anonymous No.50667832]

>>50667499
A mortgage where I live would cost over 2/3 of my income and I don't really have roots anywhere else. I keep running the numbers and I'd have to put up half the house cost in order to get a manageable monthly payment, and I don't have anywhere close to that amount of money lying around. It's so dumb, the credit system was designed around people getting mortgages and paying them over their lifetime, then housing was declared too big to fail and now no one can afford them. I pay all my payments on time and keep a responsible amount of debt yet get punished for it. Can't I just pay the banks to increase my score? That is ultimately what they want, right?

[Anonymous No.50667929]

>>50667832
Idk, I saved for 25% down, made my purchase and got my fixed rate at a favorable time, and live somewhere with a relatively low cost of living.
Just keep saving and don’t become discouraged——rates and affordability will improve within 3 years despite the priced out memes.