• Echo Dot@feddit.uk
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    3 months ago

    There is a British financial advisor who basically says the same thing.

    If you can actually manage debt make sure to get some. And then pay it off.

    • Neshura@bookwormstory.social
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      3 months ago

      One example: If you get to own a house (that’s paid off) not having debt on it is stupid because you get the lowest interest a regular person possibly can get. Even if everyone else has interest rates up to their mouth you’ll get a rate so cushy investing the money in any index fund will outperform your interest payments.

      • arrow74@lemm.ee
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        3 months ago

        Disagree, sure you can make more in the open market over time by getting another mortgage on a paid off home.

        But that invested money means absolutely nothing if the market has a downturn and you lose your job. Now you’re on the hook to a mortgage you can’t pay and risk losing a place to live.

        While on paper you can make more money, it’s very dumb to gamble with things you need to survive. And that’s all any loan is, a gamble that you will be in good health and have the means to pay it back.