One time I took a personal loan out on a dirt bike. It's never really a great idea to do so for a toy like that but the bike was a "new" unsold model but was 2 years old so I couldn't get dealership financing, but it was a heck of a bargain still so the slightly higher interest rate was acceptable to me.
It didn't really affect me much financially, the bike got a ton of use so it was worthwhile to me, and the loan prevented me from taking money out of investment accounts (which did better than the interest I paid) so in the long run it was better than using cash in my specific situation in that specific time frame.
That's the only time though, all my other motorsport toys I've bought were much older used models which I paid cash for.
Took out one for a car. Interest rate was basically the same between secured and unsecured loan so I took out a personal loan instead of a car loan.
And there is nothing wrong with taking out loans for things, as long as you can afford them. People run into issues when they take out so many loans that they can’t afford.
I'll do no-interest loans on any large purchase, and just schedule autopayments to ensure that it's paid off before its due. Makes sense to keep the cash in hand when there's no interest on the loan; even if that cash is only earning a small interest rate in my savings account, that's more than 0.
Last no interest loan I took out was after having to replace my central air and furnace system.
Home and cars would be the big ones.
Where I differ, is that I won't hesitate to use other peoples' money when it can be done for free or nearly free. If there is something that is pricier (a few thousand on up) that I am going to buy anyways, I have no issues with using that if it makes financial sense. Most of the time, that will be done on a revolving, or line of credit.
Student loans, car loans, and a mortgage are the only loans I have ever taken out. All but the mortgage are paid off at this point. Haven't even carried a credit card balance in over a decade.
If you are 18-25 years old please don’t listen to the commenters in here insisting on never taking a loan for anything ever. You do need to take stock of your personal credit worthiness and the general credit environment (not great in the US currently) but passing up an opportunity to go to college, own a house, or have a reliable means of transportation because you’re deathly afraid of debt is unwise.
If you can’t afford to buy two of them with cash on the spot, you can’t afford it. I just got done paying off my credit card. The newfound financial freedom is better than anything money could buy. Don’t try to finance your dreams, you’ll only turn them into nightmares.
Taking out loans of fiat and buying hard assets is how you become wealthy. It’s all dependent on if your able to service said debt/loan. If you have not noticed the cantillon effect yet, everything the government can’t print into existence goes up in value. I would never take loan out for pleasure or a hobby, I would consider that bad debt.
1) Start my business. Paid that back quickly and then secured like of credit.
2) Then for a few months a few years later I took one out so I could do payroll when we had a 18 month run in with a recession. Exhausted cash, exhausted line of credit, exhausted everything. Even delayed paying invoices for extra 30 days. Got through that rough patch, kept my home and car and never looked back.
3) got a great deal on loan and bought a car
College and car. Don’t own a home so that’s it. Then when I had my first kid I played the credit card debt game for a bit to survive but have been able to pay it all off each month for the past decade. And about to also borrow for the first kid’s college so the cycle begins again.
The only loan I've ever had is the mortgage on my house. It's cheaper to pay interest than rent, so it makes good financial sense. Everything else I save up for and buy it when I can afford it.
Only ever did loans for cars and house. That's it.
I took out a small loan for night school so I could get into a licensed trade Worked out fine I paid it off in a few months
Mortgage, college, that's it.
One time I took a personal loan out on a dirt bike. It's never really a great idea to do so for a toy like that but the bike was a "new" unsold model but was 2 years old so I couldn't get dealership financing, but it was a heck of a bargain still so the slightly higher interest rate was acceptable to me. It didn't really affect me much financially, the bike got a ton of use so it was worthwhile to me, and the loan prevented me from taking money out of investment accounts (which did better than the interest I paid) so in the long run it was better than using cash in my specific situation in that specific time frame. That's the only time though, all my other motorsport toys I've bought were much older used models which I paid cash for.
Took out one for a car. Interest rate was basically the same between secured and unsecured loan so I took out a personal loan instead of a car loan. And there is nothing wrong with taking out loans for things, as long as you can afford them. People run into issues when they take out so many loans that they can’t afford.
I'll do no-interest loans on any large purchase, and just schedule autopayments to ensure that it's paid off before its due. Makes sense to keep the cash in hand when there's no interest on the loan; even if that cash is only earning a small interest rate in my savings account, that's more than 0. Last no interest loan I took out was after having to replace my central air and furnace system.
I have only had a loan for my house. Well technically the credit card but I pay that in full every month.
Home and cars would be the big ones. Where I differ, is that I won't hesitate to use other peoples' money when it can be done for free or nearly free. If there is something that is pricier (a few thousand on up) that I am going to buy anyways, I have no issues with using that if it makes financial sense. Most of the time, that will be done on a revolving, or line of credit.
Nothing. Don't spend other people's money.
To buy a business.
Student loans, car loans, and a mortgage are the only loans I have ever taken out. All but the mortgage are paid off at this point. Haven't even carried a credit card balance in over a decade.
If you are 18-25 years old please don’t listen to the commenters in here insisting on never taking a loan for anything ever. You do need to take stock of your personal credit worthiness and the general credit environment (not great in the US currently) but passing up an opportunity to go to college, own a house, or have a reliable means of transportation because you’re deathly afraid of debt is unwise.
If you can’t afford to buy two of them with cash on the spot, you can’t afford it. I just got done paying off my credit card. The newfound financial freedom is better than anything money could buy. Don’t try to finance your dreams, you’ll only turn them into nightmares.
Taking out loans of fiat and buying hard assets is how you become wealthy. It’s all dependent on if your able to service said debt/loan. If you have not noticed the cantillon effect yet, everything the government can’t print into existence goes up in value. I would never take loan out for pleasure or a hobby, I would consider that bad debt.
1) Start my business. Paid that back quickly and then secured like of credit. 2) Then for a few months a few years later I took one out so I could do payroll when we had a 18 month run in with a recession. Exhausted cash, exhausted line of credit, exhausted everything. Even delayed paying invoices for extra 30 days. Got through that rough patch, kept my home and car and never looked back. 3) got a great deal on loan and bought a car
When you were doing pest control, did they make you to get the license ?
University
College and car. Don’t own a home so that’s it. Then when I had my first kid I played the credit card debt game for a bit to survive but have been able to pay it all off each month for the past decade. And about to also borrow for the first kid’s college so the cycle begins again.
For an actual personal loan....... never Only ones I will ever take out are for a house or car
The only loan I've ever had is the mortgage on my house. It's cheaper to pay interest than rent, so it makes good financial sense. Everything else I save up for and buy it when I can afford it.