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Old 1 December 2022, 07:26 AM   #35
ButtButt
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Join Date: Dec 2021
Location: Asia
Posts: 722
I'm pretty ok with mortgage debt on my homes since the rates were so damn low for the past 10+ years and it was easy to make much more than that in the market, but that's about it. No car loans, credit cards always paid off every month, etc. With rates going up so much now though I'm not sure about the future, luckily I did well enough the past few years and can afford to pay them all off if needed.

I do have friends that are comfortable taking out max loans at a high interest rate to buy cars and other luxury items. They sometimes ask me why I don't buy a nicer car but a car is a depreciating asset (most of the time) and my threshold for that is about 5-10% of your net worth max. Cars where I live are expensive, so I'm sorry if I don't feel like blowing a million bucks on a Porsche even if I could afford it. I wonder if that feeling will ever go away though (maybe when my midlife crisis hits)
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