Being Debt Free Isn't Always All It's Cracked Up To Be is an article that I found over at Smart Money.
The point of the article is that you need to carry debt because if you come to a point where you want to take on debt, it will be difficult if you have been living debt free. What a crock. However the most ridiculous part of the article was in reference to the guy that had $40,000 to put towards a house and only need to borrow $25,000 and the mortage company would only do it if he gave them an extra $2,000 as a security deposit. That's insanity.
When I finally get debt free, I hope I never have a need to borrow for anything else ever again.
1 comment:
You don't necessarily have to perpetually carry debt, but you do need to establish a good credit history to easily borrow money, regardless of how much cash you have. Demonstrating a willingness and ability to pay on time, over time, is a big chunk of the FICO score.
I suspect that that was the point of the article.
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