Quote:
Originally Posted by pavo335
did you pay cash for your house?
let me suggest there is good debt and bad debt. That debt on ya house is the bad kind and the car type that is tax deductable is the good kind.
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We are talking about cars here specifically. Your definition on good and bad debt is fine for taxation purposes, but it is not on building wealth.
What you are talking about refers to if you have both HOME loan, and car loans it is better off to pay off the non tax deductible part first.
What I am talking about is that a car loan could be a bad loan to start off with if you couldn't afford it in the first place.
If you can't pay for it outright if you haven't got passive income to cover the repayments, then it is a bad loan. Personally, if I can relive my earlier years, I would not spend money on any over the top items unless my passive income can sustain it.