Three Examples of Good Debt
Browsing through CNN's Money website, I came across this article about the three examples of good debt. The three listed were, buying a house, paying for college and financing a car. What's wrong with this picture?
A car is the most depreciable asset that you will ever own and it can depreciate by 60% in the first four years. With a good budget and foresight, you can pay cash for a two year old vehicle and still enjoy a good ride. This article also advocates taking out loans to pay for college, strike two. I have earned three degrees with no debt, raising a family on one income, it can be done. I was relieved to see buying a house listed. Now that is an almost fool-proof investment under certain conditions, you make realistic improvements to the property, you buy the house below market and you stay in the house for a reasonable period of time.
A car is the most depreciable asset that you will ever own and it can depreciate by 60% in the first four years. With a good budget and foresight, you can pay cash for a two year old vehicle and still enjoy a good ride. This article also advocates taking out loans to pay for college, strike two. I have earned three degrees with no debt, raising a family on one income, it can be done. I was relieved to see buying a house listed. Now that is an almost fool-proof investment under certain conditions, you make realistic improvements to the property, you buy the house below market and you stay in the house for a reasonable period of time.
Labels: Debt, Debt Propaganda
Posted By: Joe on Monday, December 17, 2007
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