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.
Just like people who refinanced their house and bought boats, RVs and vacations with the equity. Felt great at the time...until the good-deal period on their no-interest loans expired and the value of their house plummeted 25%. Seriously, your advice is what caused the housing crisis. Financing something you can't afford with the expectation of future financial gains.