Quote:
Originally Posted by Sliver
I'm embarrassed for CP this question was even asked.
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Why? I think it is a great question. The answer is obvious to you, but to many millions in the US and Canada it is not.
People get themselves in trouble because the assume that there are things like "good debt (smiles and nods)" and "Bad Debt (frowns and shakes head)". Bottom line is debt is debt. You have no idea what you are going to sell at years from now, so you cannot assume you will make money and the debt is good. That is a recipie for disaster.
Hence why people go out and buy more property than they can afford. Thinking this is a safe bet. Then they get burned, and it turns out to be very bad debt, maybe worse that CC debt.
The "Good Debt" line of thinking is what happened in the US. Look how that turned out.
Bottom line, is that you should always stick within your means to pay. Would you take a loan out to invest in stocks? Ask yourself that before you buy an investment property (second house, or single house that is outside of your means, etc.) with a loan.