Quote:
Originally Posted by Silver Streak
I don't think you have read fully what I posted. Let me try again. "The only thing that matters is if it gets paid for or not. If they can make the payments, what does it matter to you?"
The loans that have been paid off have not ruined this economy! So what does it matter to you if someone has done what they contracted to do. I think you need to get over it. There are plenty of people who have paid off there loans and what problem could you possibly have with them? And sorry buddy I don't think saving $200k for a house is a feasable solution, otherwise the homeowners around would be the well to be's and senior citizens. Not the kind of economy I would like to live in. Yes there are problems, but them problems come from people not paying there mortgages for many different reasons, but the ones who have paid again, What is your problem with them?
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I can't recall where I ever said that financing was a bad thing or that, in some cases, might be required. What we were talking about was long-term (60 months plus) for a car simply for the sake of keeping the monthly payment low.
I have no issue with anyone using credit, but I think too many people go into buying something with little or no thought to the long-term consequences of what they would do if their current financial conditions changed during the term of the loan. When that happens, and if those same people are unable to meet their financial obligations, then it becomes an issue for us all.
If they can't pay for the car, that means the car gets repossesed, When that happens, the institution that financed the vehicle will have a cost associated with trying to reclaim the car and auction it off (for much less than the value of the car, let alone the loan amount). The bank now has a loss on it's books that it now has to make up. They do this by raising the customers cost of doing business with them. If the costs are too high, customers leave. This could bring the value of stock down for owners and without the customers, the bank no longer needs as many employees so they hve to lay people off. When they lay people off, some of them may no longer be able to meet their financial obligations because they were already living check-to-check prior to losing their job. See how this works.
I'm not telling anyone not to finance, I'm saying they need to think things out thoroughly before they pull the trigger on some long-term financing deal for a want like a new sportscar.
Based on your last statement, am I to believe you are happy living in our current economy? I think if you are, you're in the minority in this country.