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Author Topic: Going into debt a good move ?  (Read 1901 times)

Andvari

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Going into debt a good move ?
« on: April 09, 2011, 11:16:40 am »

I've heard differing opinions on this within the liberty community.

If somebody (many do) thinks hyper-inflation/dollar crash awaits us in the  near future, why not rack up alot of debt if you could get it at a fixed interest ?

I've always been careful about heavy debt, but im startin' to change my mind ?
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Durruti

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Re: Going into debt a good move ?
« Reply #1 on: April 09, 2011, 03:43:52 pm »

I'd advise against it.

If hyperinflation happens you can be sure the interest on your debt will be adjusted to make up for it.
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powersupplyguy

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Re: Going into debt a good move ?
« Reply #2 on: April 11, 2011, 11:49:57 am »

I agree that it might be a good idea to rack up debt.  Last year I took out a big mortgage on my house that was free and clear.  Bought Silver - doin ok.  I paid it off this morning and am shopping around for a fixed rate.   So if you can borrow at a fixed price and makemony on the deal then go for it.

The only thing I would advise is to keep the debt to a point that you can pay it off in a hurry if you have to.  Never know what the criminals in DC are going to do.

regards,
Bob
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Denis Goddard

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Re: Going into debt a good move ?
« Reply #3 on: April 11, 2011, 03:43:40 pm »

I think the only way this would make sense would be if
1) your debts are in US Dollars, and
2) they are at a fixed rate with a long term (10+ years), and
3) are being used to fund investments that pay dividends in strong currencies

Note, I'm not a financial advisor. I may be drunk, high, or both.

freedomroad

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Re: Going into debt a good move ?
« Reply #4 on: April 11, 2011, 04:04:24 pm »

If you are talking about a low interest rate on a house that you live in, that sounds great.  Otherwise, I'd try to avoid debt when possible.  Especially avoid credit card and store card debt, those interest rates can be very high.
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