Debt is modern slavery.

[TheX]

So, paid off the '25 OBX Sasquatch at 6 months old.

I had the cash, but my wife was worried that she had no credit score activity, so we got a loan for $17K. Trade-in was paid for.

I hated paying interest for no reason. When I was younger paying cash for a car wasn't always an option. People seem to have no concept of compound interest. They only care about the monthly payment so they'll stretch the loan out over 7 or even *gasp* 8 years. Pay a lot more interest and be upside down almost immediately, then when the car is 2 years old they are already tired of that old thing...so they trade it in.

"Those who get compound interest, get it. Those who don't get it....pay it."

Sponsored

 

[freebob]

Its called working for the man.. You can call everything you do
modern slavery.

 

[dwrufus53]

It's the American way... mortgage your future and spend your future earnings for immediate gratification. It's truly sad.

We buy things we don't need with money we don't have to impress people we don't even like. - Will Rogers

 

[birddog2]

On the other hand -
When we bought our 2021 Badlands a local credit union offered a 0.9% interest rate.

To pay cash, we could have withdrawn $20,000 from our investment account.
We likely would earn substantially more than 0.9% by leaving that amount where invested and would have had to pay capital gains tax.

 

[Frenchy906]

On the other hand -
When we bought our 2021 Badlands a local credit union offered a 0.9% interest rate.

To pay cash, we could have withdrawn $20,000 from our retirement account.
We likely would earn substantially more than 0.9% by leaving that amount where invested and would have had to pay capital gains tax.

This is when loans make sense.

HY savings account making 3-4% (mine is 3.4%) and making more per month is logically wise.

I worked for 8 years as a commercial loan underwriter, and the amount of people that had the cash, but took out loans instead made me learn why.

 

[rorlow]

Some things I made sure of before I retired-
1. Paid off condo mortgage
2. Installed new furnace, central air and hot water tank
3. Bought out 2022 Badlands lease
4. Bought Ford extended warranty and paid in full
5. Moved 401K to highly recommended financial group
6. Medicare insurance now handled by a senior benefits group

#5 & 6 have worked out unbelievably well and eliminated a ton of stress.

 

[CLR]

Thank you all for the humble brags.

 

[dockiwi57]

So, paid off the '25 OBX Sasquatch at 6 months old.

I had the cash, but my wife was worried that she had no credit score activity, so we got a loan for $17K. Trade-in was paid for.

I hated paying interest for no reason. When I was younger paying cash for a car wasn't always an option. People seem to have no concept of compound interest. They only care about the monthly payment so they'll stretch the loan out over 7 or even *gasp* 8 years. Pay a lot more interest and be upside down almost immediately, then when the car is 2 years old they are already tired of that old thing...so they trade it in.

"Those who get compound interest, get it. Those who don't get it....pay it."

My folks started a family in 1936 so were profoundly impacted by the Great Depression. They imparted simple and easy to follow principles which have served me well: 1) pay yourself first (save/invest in education), 2) live below your means, and 3) never buy anything on time except a mortgage and a car (car is to get to work).

I remember my mom had a "Christmas Club" account at the bank where she put in money every month for 11 months, received interest, and then used the balance to buy simple, meaningful gifts for family and friends. I've never carried a credit card balance (see item 2 above). Thanks mom and dad.