03-12-2021, 07:49 PM | #1 |
Started#gottalovethatblue
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Debt. Good, bad, or whatever?
Just a general discussion because I know there's plenty of opinions and there's plenty of rampant debt right now, keep it respectful, but IMO there is no such thing as a good debt. What do you think?
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03-12-2021, 07:51 PM | #2 |
Drives: 2014 SIM 2SS Join Date: Sep 2015
Location: Charlotte, NC
Posts: 925
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0% APR is tough to beat
If I have the cash but can finance at no charge and keep my cash, might as well. |
03-12-2021, 08:18 PM | #3 |
Started#gottalovethatblue
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0 payments trumps "0%" financing. Repossession and foreclosure occur on things with payments. Besides cash talks and BS walks. I've been able to get MUCH better cash deals than 0% financing deals because 0% just means they built the cost they're losing on interest into the price of the item.
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03-12-2021, 08:23 PM | #4 |
Drives: 2010 Camaro SS Join Date: Jul 2018
Location: Indiana
Posts: 544
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i hate being in debt. I was young and dumb once and trashed my credit when i was 18. I had to go a little in debt to get my credit score up to a respectable level.
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2010 2SS/RS 6M, MGW flatstick, CAI cold air intake, SLP loudmouth 2 axleback, TSP 1 7/8 headers w/ hfc, pfadt 1" springs, SRP pedals, emblempros "6.2L" emblems on hood, ZL1 grill, M/T SC-5 wheels, nitto motivo 275f 315r. ZL1 addons wickerbill, smoked lenses, resonator delete x pipe, diode dynamics DRLs 1LE suede steering wheel, mighty mouse CC. SCTX4 and Dyno Steve tune.
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03-12-2021, 08:25 PM | #5 | |
Drives: 2013 Camaro 2SS/RS Join Date: Aug 2020
Location: Pacific Northwest
Posts: 802
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03-12-2021, 08:41 PM | #6 | |||
Drives: 2014 SIM 2SS Join Date: Sep 2015
Location: Charlotte, NC
Posts: 925
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03-12-2021, 08:42 PM | #7 |
Drives: Chevy Camaro Join Date: Mar 2021
Location: Michigan
Posts: 8
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I did the Ramsey thing. Made it all the way to step 7. Three months later I financed a new car. Burnt myself out apparently after 4 years of no "fun" lol. So I'm pretty anti debt myself but I think you have to live a little in the interim.
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03-12-2021, 09:32 PM | #8 | ||
Started#gottalovethatblue
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As for your cash back idea, you're more likely to spend more using a credit card than you are with cash, check, or even debit card. Significant enough that the money you're "making" or "earning" you've anyway spent on random other stuff. Quote:
My wife and I are big Dave Ramsey fans because it's been incredibly beneficial for us. We've paid off a substantial amount of debt and set ourselves up well for the future because of it. If you made it to baby step 7 and didn't live at all you kind of missed the point. You need a free spirit so you still actually have a life, but car loans suck. Pay it off and move on.
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03-13-2021, 05:09 AM | #9 |
Whosoever Will
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03-13-2021, 07:05 AM | #10 |
It don’t come easy.
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I have one credit card that I’ve NEVER paid a finance fee on, in my life. Having said card doesn’t make me go out and spend frivolously. If anything, they don’t like people like me, as we don’t make them any money on the back end. Plus, they pay me to use it. Doesn’t get much simpler than that.
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03-13-2021, 07:15 AM | #11 | |
Drives: 2013 Camaro 2SS/RS Join Date: Aug 2020
Location: Pacific Northwest
Posts: 802
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What the lender does it lend at interest free. They calculate the interest but do not apply it to the loan unless the borrower misses a monthly payment. If that occurs then they add the interest into the pay back. I have three such loans and I make the payments on time so I pay no interest. It is interest free borrowed money in that regard. |
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03-13-2021, 07:16 AM | #12 |
Whosoever Will
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So your not a borrower, smart move.
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03-13-2021, 07:22 AM | #13 | |
Started#gottalovethatblue
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While a credit card might not make you go out and spend firviliously or carelessly, I bet if you had a budget set aside for the same amount of money that you average out spending each month for a regularly purchased budget item and used cash knowing that when you were out you were out, you’d end up spending less money or be much more mindful over what you spent on. The reason for that logic is that studies have shown that when you spend with cash it activates the pain center of the brain. Spending with cash actually causes you pain, knowing that the money you’re spending will never come back. However, spending the same amount with a credit card had zero brain activity, bringing a new meaning to the term “mindless spending”. You know that the card is coming back and there’s nothing actually leaving your possession. An additional example is the vending machine industry. When the vending machine companies started adding credit card machines to their machines the average transaction went up 160%. No longer did you have to dig through the car seats to find some coins. Now you could just go over pick anything you wanted and swipe away.
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03-13-2021, 07:31 AM | #14 |
It don’t come easy.
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Agree with what your saying pyro. In my particular case, doesn’t matter if I use card or cash. I buy what I think I need. It’s justifying it with real need vs. want. And of course, justifying it with the other half.
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