Quote:
Originally Posted by activeStick
Hoping the return to normal lending rates will curb the tons of people from borrowing to live and living beyond their means simply because everyone else is doing it. If you can't afford a mortgage and everything else in life, you shouldn't be borrowing just because. Same with the nice car and vacations.
|
If someone will give you a mortgage you probably should take one. That’s a completely separate discussion from cars and vacations. The cost of housing is the one thing that you can’t blame individuals for. In general ownership is a better decision for most people most of the time.
Unless we crack down on credit access like limiting car loans to 5 years, banning leases (or at least get rid of the tax advantage) people will continue to borrow. Even things like insurance being a monthly payment instead of annual encourages just in time spending. Rates won’t deter this lenders will just get more creative.