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.
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.
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.
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.