Quote:
Originally Posted by Dominicwasalreadytaken
I think you need to qualify that more often Red. Because you sometimes come across as someone who says "borrowing is bad".
I love it that people are throwing their credit away on frivolous items. There are going to be people to take advantage of in some time, and it'll be their own fault, not mine. I won't feel bad plundering.
I think investing with your HELOC is the best possible thing you can do right now. It's virtually free money, may as well get it to work for you. 5 years ago I could never have dreamed of having $150k available to play with. Now I do, so I get to have 3 houses. The HELOC hasn't changed my personal finances one iota. I don't spend more, or less, just because I have equity. I just invest more with the bank's money. I love it.
|
Well, I do think that borrowing is bad:-), but I am not ignoring the advantages it can have. I just don't agree that it works for majority. People rely on credit for too much. Just like Sylvanfan said, getting an RRSP loan can be beneficial, but there's a far better way to get even better benefits. Save for your RRSPs and pay cash. Sylvanfan, to get a 40% return you need to earn more than 73K. People in that tax bracket should have no problem buying RRSPs for cash. And borowing 10K on a fixed loan is a lot different than HELOC. With HELOC most people would not pay the principal every month, they'd spend it elsewhere. On average it would probably take 15 or more years to pay it off. Yes, people are that irresponsible :-(