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+--- Thread: Irrational aversion to debt? (/showthread.php?tid=1331)
Irrational aversion to debt? - navyasw02 - 09-05-2015
I got a new car loan at 1.49% for 36 months, but I can pay it off by the end of the year with no problem. Then as I was going through the thought process of paying it off when I asked myself if I really should? I am so anti-debt that the very thought of having a loan is unappealing; however, I certainly make more in dividends than my interest rate.
Is debt really bad?
RE: Irrational aversion to debt? - crimsonghost747 - 09-05-2015
A little debt is fine... as long as it's manageable.
So in your case... well 3 years seems like a long time for a car. But you certainly don't need to hurry up on paying it off. I'm like you, I hate debt. But when the interest rates are like they are now, it's smart to think what else you could do with the money that you are spending on paying back debt fast.
RE: Irrational aversion to debt? - Roadmap2Retire - 09-05-2015
I concur with crimsonghost747. A bit of debt is alright - as long as its manageable. A 1.49% definitely is not bad at all - since you can deploy your money more smartly elsewhere (i.e., investing for better returns)
RE: Irrational aversion to debt? - NilesMike - 10-25-2015
I do not like any debt to purchase depreciating assets. Debt is to purchase long term appreciating assets.
RE: Irrational aversion to debt? - navyasw02 - 10-25-2015
(10-25-2015, 07:26 AM)NilesMike Wrote: I do not like any debt to purchase depreciating assets. Debt is to purchase long term appreciating assets.
I ended up getting 0.74% interest. Put enough down payment on my credit card at 2% cash back to more than cover the interest for the life of the loan. Free money.