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Pay Off Your Debts | 5 comments | Create New Account
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Pay Off Your Debts
Authored by: martingale on Monday, December 20 2004 @ 09:16 PM EST
Hi Frank,

I think you are exactly right in everything you said, and thanks. I will stick to my guns and call borrowing for consumption "bad debt", but I will note that I also sometimes eat hamburgers and french fries. Yes, it's bad. Yes, we all do it sometimes even though we know it is bad. The most common example is a car loan where you didn't really need a car, but didn't have the cash to buy a car outright--you do have to live a little in your life.

As for your wife going back to school I would view that as an investment in her future, and as such, you expect a return on that investment: her increased future earnings. So debt racked up as a consequence of supporting her return to school very much counts as "good debt" in my books.

Thanks again for your comments!

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