I’m impelled to go “back in time” to a topic that we discussed in April. Then, we discussed More vs. Enough—the lack of contentment that often leads to over-consumption. But with interest rates again hovering at record lows, I’ve been addressing good questions from people wondering if today’s historically low interest rates are a “game changer”? Should you now consider doing a cash-out refinance and investing the proceeds? Should you buy the car with a low or “no” interest loan?
Good Debt vs. Bad Debt. Is that the question? I challenge that entire premise in the next installment of the 90 Second Finance video blog series, and I encourage you to spend a couple minutes to check it out and post your comments, questions and criticism.
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Tim,
ReplyDeleteThis is good. I like the 90 second idea. Keep them coming
Tim,
ReplyDeleteHow refreshing it is to see a thought process that mirrors my own.
I was happy to see that you chose the term “better debt” over “good debt”` as we know there is truly no such animal as good debt. I believe that the term “better debt” is nearly synonymous with “unavoidable debt” which could be applied to manageable mortgage payments.
I agree that being debt free is the ultimate goal. When Deb and I recently bought a second home in Florida we were offered different mortgage plans which of course we did not need. Instead, we told the agent what we were willing to spend as I personally feel that if we needed to apply for a mortgage for a vacation home, we should not be purchasing a vacation home. In fact, the market is loaded with vacation homes being sold by folks who should never have purchased a vacation home.
I see many people fall into debt because they choose to pay someone to do things they could do themselves. For example, today I have to paint the second floor of our home and wash three cars, with painting falling into the “not my favorite job” category. Although I could easily afford to hire a contractor, I cannot in good conscience pay someone to do something that I can do myself. If I were not retired, I may be able to justify the expense, but I would not enjoy a day at the golf course while paying a contractor to paint. The cars will be washed with a bucket and hose in my driveway; I believe I can wash all three vehicles for less than five dollars, while the basic car wash would be twenty dollars for each vehicle.
I look forward to your videos – please keep them coming!
Tim DeHoff