Comments on: How To Know When You Should Finance Everything

By: David Robarts

David Robarts — Wed, 12 Aug 2009 21:38:40 +0000

One rule you failed to mention is the length of the loan vs. the length of utility from the purchase. You should never buy finance something over a period that is longer than the period you are likely to use it. Before you decided that the 4-year car loan is affordable, you need to be sure that the car will still be meeting your expectations in 4 years.

By: Scott

Scott — Wed, 12 Aug 2009 20:01:44 +0000

I don’t think I would ever finance something if I didn’t have to. I see the point you make about investing that money, but you would have to be running a very successful business to feel that confident about your investment (although, I could see $30k doing a lot of good for expanding a small business’ horizons). However, I don’t think I would ever buy a $30k car in the first place. Personally, I’m more concerned about staying out of debt than I am in making money. Peace of mind means a hell of a lot more to me than striking a few extra thousand off of a risky decision that could turn sour in many ways. That’s probably not the way the average millionaire thinks, but I’m not dumb enough to think I have the skills to take risks and come out wealthy. Again, that’s just me.

By: creditcruncher

creditcruncher — Thu, 06 Aug 2009 03:35:25 +0000

I am working on getting better at paying all small daily bills with cash. The times I have taken advantage of credit is with 0% interest offers. I got LASIK done several years back where my loan would be interest free for 18 months. I paid it all off in 18 months so I did not pay a $1 of interest. Also I have had friends that purchased products from Best Buy/Circuit City that took advantage of purchasing TVs or stereos using the 6 month or 12 month 0% interest offers. This also helps you see if you can fit this purchase in your budget.