Originally Posted by
StanSeven
Also as posted above, it really is a personal decision and people use loans all the time to buy things like cars, vacations, etc. It's important to recognize the risks and the costs, which also has been stated.
Completely different scenarios. Most people need a car to commute to work, use for work, etc. And then most of these people aren't taking out loans to buy Ferraris and Lamborghinis.
Education: this is not a luxury item, it's investing in a career.
Vacations: stupid thing to finance. Why dig a financial hole for yourself on an essentially non tangible item? There are plenty of cheap vacations one can take.
I just did a calculation and the interest on a one year 6% loan for a $5,000 bike is $160. So the question is whether it's worth $160 to have a bike now as opposed to waiting as long as a year to save for it. If it gets you out to ride longer and/or faster, it's probably worth it. But if the debt makes you nervous, then it's probably not wise.
Completely irrelevant. You may only be paying $160 in interest but you still owe $5160 for something that you didn't really need and couldn't afford in the first place.