Unless you are the dumbest person in the world, you probably have realized I’m not the biggest fan of debt. I think it’s pretty stupid. I don’t even believe in such a thing as “good debt.” Although I’m a pretty avid debt puncher, I do compromise on two issues…
So I guess houses are kind of expensive. The median home price in my zip code is $708,000. Even if Girl Ninja and I were able to stock away a whopping $50,000/yr in savings (which we aren’t), it would take us over 14 years before we could buy a house with cash. And that’s assuming home prices don’t increase during those 14 years we save. While we do plan to have a sizable down payment saved before buying a home, we plan to take on a reasonable mortgage. Yeah, I know. I totally compromise my debt punching for a quality of life boost. To those of you that plan to pay cash for a house, I respect you greatly, but I simply don’t share your vision.
This one goes without saying, and I assume most of you would agree. If for some reason the crap hit the fan and I was faced with a decision between death or debt, I’m gonna take on some debt. That said, I am doing what I can to ensure I never have to be faced with that choice. I pay a pretty penny for health/dental/vision insurance each month, not to mention I have a decent chunk of change sitting in an emergency fund. My insurance and savings should prevent the need for medical loans, but on the rare chance I needed to buy a new kidney on Ebay, you better believe I’d do so. Side Note: How much you think a kidney goes for? $50K? $100K?
That’s it. Those are the only two areas of my life I foresee incurring debt. I realize my stance may be extreme for some, and for others it’s probably not strict enough. And this leads to today’s question….
Where do you draw the line?
What type of debt have you sworn off for good?
What type of debt are you comfortable with?
Do you think you’ll finance your next vehicle?
At what point does debt go from being logical to being ridiculous?
p.s. click the “dumbest person in the world” link in the first sentence for a special treat