Quote:
Originally Posted by red 928
How about the really smart people who take
out a home equity loan to buy a car?
That way they can make payments on the car for 30 years.
Even LONGER if they continue to refinance and draw out equity.
If they play their cards right, a car loan could last a lifetime
and they could end up paying for a dozen cars at the same time!
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One of my former co-workers lives in a 900 sq ft house over close to the airport. They have been living there since the 1970s. They drive decent cars, but nothing lavish. They do go on a lavish vacations every year, and put everything on a credit card. Then pay the card off each year. I asked why not skip one vacation, and put that money in savings and pay cash for the vacation. They looked at me like I asked them for a threesome in the front yard. The concept of paying in advance and not paying interest just made no sense to them. I just shook my head. It was their money, and their choice.