Originally Posted by
Name User
The argument that a car is bad debt is superfluous. I would argue it can be good debt (if reasonable and reliable) AND bad debt (if you bought a luxury car).
Ehhhh debt on things that depreciate is never a good thing. I understand sometimes it is necessary but should be avoided if possible.
Originally Posted by
Name User
In 2019 our net worth increased $600k (we are in our 30's). If I had decided to pay off mortgage debt instead of investing the money instead, it would've been a LOT less.
As an example, $250k would've returned $75k in the market last year. At 3% interest you would've "saved" under $10k in interest paying that down. You would've lost over $65k paying off your mortgage...in a single year...
Low interest debt is not a big deal as long as you are accumulating assets. It's leveraging up and buying the big house, $40k-$50k car, etc while having nothing to your name that gets people in trouble.
Very good point, but you forget to factor in risk. If for whatever reason you go bankrupt, in many states they can't take your primary residence. Having a house that is paid off increases your financial security.