Loans, Worth It?
Out of context: Reply #17
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- airey0
hey designbot, that's an opinion and valid. all i can say is that without a bit of controlled borrowing it's very hard for some people to get ahead. i'm not talking 12 credit cards (i have 2, 1 for business use and 1 tied into the home loan as an offset account. both paid off every month.)
all i can offer is my experience:
1. to get my first car i had to get a loan. this led to smaller loans for future cars (i did try sticking with the first car but it eventually went the way of the dodo, cost me to have to borrow 100% against the new one dang it). granted you don't have to have a car but try living in a city this size (brisbane - geographically but not population wise) and you're buggered. just today i have to drive to the gold coast for a meeting - 1.2 hours by car. i drive a mazda 3, small and cheap car but reliable so i'm not talking porche size loans here. without a car i couldn't run my business. others would agree but that depends on your city obviously.
2. a house. you don't have to buy but unless you're clever enough to invest a percentage of your wage / income a home is a good starter in an investment plan for some kind of stability in both short term and mainly loooong term life choices. the equity in a home will let you borrow for future important issues - business startup, kids education, emergency stuff.
these issues may not seem important depending on your age but i would imagine anyone over 30 would understand the theory.
a loan will also start building a credit history also which is important for your future insofar as offering options you can use if need be. need cash to start up a business, there you go.
just an opinion.