i was driving in to work the other day and heard an ad on the radio about living debt free and how great it is. i understand the allure of carrying no debt, there are some forms of debt that make a lot of sense.
i mean a mortgage, for example, affords me the opportunity to build equity in my home versus spending money on leasing. what this amounts to is that with a mortgage, i get a vehicle for saving money rather than spending it.
the same cannot be said for most other forms of debt, which is where i agree with debt free community. i currently carry debt in the form of home and car loans, but their rates are very reasonable and in the case of the car loan, i can take the cash that i would have spent and invest it. if i can at least break even on it, i prefer having the flexibility of having the cash.
anyway, living debt free may be nice for some, but if the plan involves me selling everything and living on the street, aren't i better off living with some debt?
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