Originally Posted by
StanSeven
But what you're missing is many people get enjoyment out of an expensive bicycle (I won't use $10,000 as an example though). To them the excitement, joy and thrill of having that new high end bike right now is worth the added interest. Or the couple that has just gone through difficult times and sees a vacation in Hawaii right now is worth it. Or the couple that wants to buy their child a graduation gift.
Those expenditures may not make sense from a purely financial planning perspective but they may add lots of value to their lives. Again they are decisions people need to make based on their own circumstances.
They may "add lots of value to their lives" but they are also taking away a lot of value by getting into unnecessary debt. There is a reason why predatory lenders exist today - because they take advantage of people with the "gotta have it now" attitude and soak them for all they're worth (and they're not worth much). You obviously think it's worth it. Fine, just ask yourself if it's worth it when you can't pay for your kid's education in 18 years or when you're 65 years old and have nothing saved up for retirement.
And how many times do you have to be told this? The interest rate is irrelevant. It's getting into debt that's the problem. So are you saying that financing a $200k Ferrari with 0% interest is something you should do when your income is only $40k/year and you have nothing saved up? You may not be paying any interest on the loan (great, right?)
but you still owe $200k to the bank and you have a $200k liability in the form of an Italian sports car in your garage.
For someone who thinks he's wasting his time on this thread, you sure are spending a lot of time trying to justify yourself.