I mean when you need how much? when it takes you 3 months to pay it off without borrowing? 6? 9? 12? What is considered urgent? buying a house? a car? a medical operation?
2007-07-24 15:16:10 · 5 answers · asked by think_of_the_bubble 3 in Business & Finance ➔ Personal Finance
Only if you'll wind up ahead of where you would have been had you not borrowed the money.
Buying a house is a good investment. You will wind up ahead, if you can afford the house you are buying, and borrow at a market rate, for a 30 year fixed rate mortgage.
Your education can be a good investment. If you are sure you can make more money after borrowing for your education than before, and you don't borrow too much, you should invest in yourself. Don't borrow more than you can realistically expect your yearly salary to be your first year our of college.
And I suppose that being in debt for medical bills is ahead of being dead. But you should plan ahead, and have health insurance, so you do not encounter this situation.
I can't think of another good investment that you have to borrow for. A car most certainly does not qualify. It is a consumable item, not an investment. And it's a money loser. Your car will be worth less than you owe on it the second you buy it, if you borrow to buy a car.
2007-07-24 15:29:34 · answer #1 · answered by Lisa A 7 · 2⤊ 0⤋
Borrow money when you need something like surgery you don't have a choice to wait for. Buying a house when you can afford the payment for not much more than rent and a car when you get a better interest rate than you get on savings or when you make more by being able to get to work that the payments cost. I wouldn't borrow any money I didn't need to except a credit card amount I was planning to spend anyhow so will pay when the bill is posted.
2007-07-24 15:25:41 · answer #2 · answered by shipwreck 7 · 2⤊ 0⤋
Only borrow on account of things such as a home,
and if necessary a house. The home is one of the
FEW things in life whose value doesnt depreciate
with time. Cars go down 15%, and if you borrow with
interest (which is around that anyway) youre going
to burry yourself in debt. Only borrow as much as
you KNOW you can pay back within a short timeframe.
Never wing it because unemployment, extra expenses,
and emergencies happen.
2007-07-24 15:24:14 · answer #3 · answered by Krumpli leves 3 · 1⤊ 0⤋
Only borrow money if it makes you money.Otherwise save up for what you need or want.Borrowed money you turn you eared dollar into 60 cents by the time you are done paying.Saved money you probably turn you earned dollar into$1.25 And Never borrow money to create a tax write-off you may need to spend $1000,--To save $300,--on income-tax
2007-07-24 15:26:59 · answer #4 · answered by hillman 3 · 1⤊ 0⤋
These people feel the have a true reason to borrow money.
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2007-07-24 15:30:15 · answer #5 · answered by Anonymous · 0⤊ 2⤋