Hmm. The purpose of credit is to consume today what you would consume in the future instead. I think too much credit is what's made real estate so expensive wherever credit is available to buy it.
Then again everyone buys electronics on credit and that doesn't seem to be going up as fast s real estate went over the last 20 years or so.
Then again everyone buys electronics on credit and that doesn't seem to be going up as fast s real estate went over the last 20 years or so.
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@nerdman
The way americans value credit, especially for when they want to buy homes, is absolutely bonkers. Only place I've ever heard of where incurring debt is proof of being responsible with your money.
@alyx
Someone explained to me once (not sure if it holds true) that getting a mortgage is actually more effective, tax-wise, than saving the money and outright buying the place, so it MIGHT be true, that getting a mortgage is responsible.
It goes against every fiber of my being, mortgages, unless fixed rate at under inflation, which of course is kind of hard to get / time / etc. I did it once and it worked out, to be fair. Of course it was a government backed loan so I kind of paid extra in taxes but my wife is an acountant, pretty sure we made money on that.
Someone explained to me once (not sure if it holds true) that getting a mortgage is actually more effective, tax-wise, than saving the money and outright buying the place, so it MIGHT be true, that getting a mortgage is responsible.
It goes against every fiber of my being, mortgages, unless fixed rate at under inflation, which of course is kind of hard to get / time / etc. I did it once and it worked out, to be fair. Of course it was a government backed loan so I kind of paid extra in taxes but my wife is an acountant, pretty sure we made money on that.
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@nerdman
I get mortgages, cause in today's global economy, it's kinda impossible to save up money and buy a house in any reasonable amount of time. But the fact that buying things on credit, constantly, from big electronics to your daily groceries, is somehow counted as you being responsible, so you'll get better offers for big loans, that's the part I find outrageous.
At least you didn't shill crypto.
@bot @alyx
Gold has 4000+ years as a reserve of value. Crypto gonna need a while to catch up.
Also gold is pretty and I can touch it.
To be fair I did make money with crypto back in the day. $450 in GPU made me $10k or so. Not a bad deal. I can say I profited definitely from crypto.
I also beat a casino once. I bet $50 at a black jack thing. Won $75 or something like that. Grabbed my stuff and left, and will never gamble at a casino again, my streak unbroken forever thusly.
Gold has 4000+ years as a reserve of value. Crypto gonna need a while to catch up.
Also gold is pretty and I can touch it.
To be fair I did make money with crypto back in the day. $450 in GPU made me $10k or so. Not a bad deal. I can say I profited definitely from crypto.
I also beat a casino once. I bet $50 at a black jack thing. Won $75 or something like that. Grabbed my stuff and left, and will never gamble at a casino again, my streak unbroken forever thusly.
That was my point. By allowing mortgages, you give people money today so they can buy houses today instead of having to save first. Meaning there's more money for the same homes, meaning the prices of real estate is artificially inflated.
To me being responsible is being thrifty. Credit has a place. But buying something on credit because you want it now instead of it bringing you profit somehow, I agree, that is not responsible.
Saving is responsible. And true responsibility is when you start saving some percent in metallic gold.