"SHOW ME THE MONEY" VIEWS on HOW to make MONEY GR

[Scott Campbell]

Your point ignores risk. Debt creates risk. Sometimes the risk pays off, and as many Americans have recently found out, sometimes even "safe" risk doesn't pay off.

I wouldn't argue that. But debt is a tool that that can be used properly to make calculated leveraged bets. Many successful businesses would have never seen the light of day without the prudent use of debt. Most companies utilize debt or issue bonds to fund further investment in their businesses. It should be paid back quickly. It should not be used to fund consumption. Again, the biggest problem with debt in this country is that it is used improperly far too often, IMO.

"All debt is bad" ignores the degrees of badness.

I say this even though I haven't had any debt myself since I was 37 years old.

[retailguy]

I wouldn't argue that. But debt is a tool that that can be used properly to make calculated leveraged bets. Many successful businesses would have never seen the light of day without the prudent use of debt. Most companies utilize debt or issue bonds to fund further investment in their businesses. It should be paid back quickly. It should not be used to fund consumption. Again, the biggest problem with debt in this country is that it is used improperly far too often, IMO.

"All debt is bad" ignores the degrees of badness.

I say this even though I haven't had any debt myself since I was 37 years old.

I would submit that "business debt" is different than "personal debt" although not by much.

Personal finances are very difficult to control with a budget. If I had a dollar for every tax client that I had who stuck to their busines budget like glue, but their personal finances were a mess... Well, you know the rest.

Also, this recession should show people that it doesn't have to be your debt that causes you problems, just ask joemailman's brother in law....

I understand the point you're making regarding degrees of badness, but, well it doesn't much matter to me.

[Partial]

With the 8k in tax credits this year for buying a home, I can wipe out a nice chunk of student loans. Should I start saving my money like crazy to buy a home and use that 8k to pay off loans?

I'm kicking this idea around. My dad is strongly advocating that I buy a house ASAP as inflation is coming big time and home prices are going to sky rocket up within a year or two supposedly.

[MJZiggy]

If you can afford to buy a house, it's a serious buyers market right now. It won't be forever. They are trying to liquidate foreclosed homes still.

[Scott Campbell]

If you can afford to buy a house, it's a serious buyers market right now. It won't be forever. They are trying to liquidate foreclosed homes still.

There are a lot of people who believe we are set to see a second wave of foreclosures.

[Partial]

RG, Bretsky, Patler, any thoughts? I'm sure RG will say to get out of debt first, but I have already paid down 3k, so I'm at 11k debt. That 8k will knock off a nice chunk of the remaining debt. Almost too good to be true?

[Tyrone Bigguns]

ty thinks you should buy a house.

Ty can't wait for the litany of issues that follow detailed in your blog.

[MJZiggy]

Fixer upper. Those are cheap.

[Bretsky]

Fixer upper. Those are cheap.

Need serious down payment for a serious fixer upper

[Bretsky]

RG, Bretsky, Patler, any thoughts? I'm sure RG will say to get out of debt first, but I have already paid down 3k, so I'm at 11k debt. That 8k will knock off a nice chunk of the remaining debt. Almost too good to be true?

I'd warn you that RG and I will not agree on this one

Tons of value out there in the housing market

I'd consider buying a home if the right property came through

I know a dam good home loan officer

[GrnBay007]

There are a lot of people who believe we are set to see a second wave of foreclosures.

Like when?

What does this mean for someone that has been in their home 4 years and is thinking of selling?

I like my house (and love my neighborhood) but there are a few things missing in this house that I would really like, so I suppose it would be an upgrade....not a lot though. Just a little fine tuning to make it the house I will keep.

[Bretsky]

There are a lot of people who believe we are set to see a second wave of foreclosures.

Like when?

What does this mean for someone that has been in their home 4 years and is thinking of selling?

I like my house (and love my neighborhood) but there are a few things missing in this house that I would really like, so I suppose it would be an upgrade....not a lot though. Just a little fine tuning to make it the house I will keep.

It probably means you will get less money than you think your house is worth but you will also be able to find a bargain out there

[GrnBay007]

It probably means you will get less money than you think your house is worth but you will also be able to find a bargain out there

Like less than the assessed value? Or less than what a house should appreciate per year?

[Tyrone Bigguns]

I'd warn you that RG and I will not agree on this one

Tons of value out there in the housing market

I'd consider buying a home if the right property came through

I know a dam good home loan officer

If you dance with the devil, the devil don't change. The devil changes you.

[Patler]

RG, Bretsky, Patler, any thoughts? I'm sure RG will say to get out of debt first, but I have already paid down 3k, so I'm at 11k debt. That 8k will knock off a nice chunk of the remaining debt. Almost too good to be true?

Is buying a house a good idea? Maybe.

Buying a house at a good price, a price that you can afford including everything that will be associated with it is generally a good idea. For now I would add another caveat, its a good idea if and only if you will be content to live there or at least continue to own it and pay for it for a reasonable period of time (at least 5 years, perhaps even a little longer). There could still be some uncomfortable swings in house prices in the short term.

If your intent is to buy now and sell in a year or two, it might work out, but it also might not. I would not buy with that intention right now.

Buying an overpriced house, or a house you can not afford at your present income is never a good idea.

How stable is your job?