Quote:
Originally Posted by Got the Bug
Agree with Rodney 100%
This is a circular conversation. One size doesn't fit all and each person's financial situation is different.
I've leveraged a HELOC many times over the years, but I've always balanced that with the knowledge that I could liquidate other assets to pay off the equity line if needed. You just need to be disciplined and pay down the principle. I'm also the guy who always takes advantage of 24 month 0% financing for large purchases, because I know I'm going to pay it off before the interest kicks in.  |
Exactly.....
use the tools of finance to your advantage....
Here are 2 scenarios.
1 an individual has the cash to buy a 100k car plus say 10% extra for unforseen issues.
So they buy the car and have 10k left over,said person then looses job or becomes seriously ill and can't work for months no income.
Now said person goes thru said 10k left over in a couple months and is now broke can't pay bills what does he do??
2 nd individual has the cash to buy 100k car but elects to keep it invested or in a cd, takes out "fixed" equity loan which is also tax deductable.
So they buy the car said person then looses job or becomes seriously ill and can't work for months no income.
However said person has the 100k in bank or security's to ween off of untill things get better.
I ask you who is better off in this situation 1 or 2??
