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What's the best debt you have had?

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    What's the best debt you have had?

    I thought I would throw a little bit of a curveball here and ask the question that has probably never been asked. What is the best debt that you have ever had? I know that debt is supposed be bad, but there are also times when it can be beneficial if you do it the right way. I'm thinking of things like a mortgage on a house. Most people wouldn't be able to afford a house without going into debt to buy it. I know a lot of people have bad debt that they wish they had never taken out, but of all the debt that you have had, what would you consider to be the best? I know it's kind of a strange question, but I thought it might get people thinking a little bit in a different way about debt.

    #2
    Probably my student loans from my MBA degree.

    My degree got me a promotion and a nice raise a while back, and more are probably on the horizon.

    I'd argue that going back to school was a good use of taking on debt.

    The payments are low and I plan on having the loan paid back early.
    Brian

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      #3
      Any debt I have ever had was GREAT.

      The only real debt we have had is our mortgage. Living in a crazy high cost region it allowed us to pay $1,500 per month to own an apartment that otherwise cost $3,000 per month. (& trust me, it was nothing special). The income tax savings covered all the other costs (property taxes, HOA, maintenance, etc.). When you do those breakeven calculators considering down payment and lost opportunity costs I swear we broke even in the first month. At the time we were in our young 20s and we hadn't run such an in depth financial analysis. It was just the only thing that seemed to make any financial sense. Our current home purchase is along the same lines. We could pay $2k per month to rent the same home, or we can pay $1k per month to own and get a bunch of tax breaks.

      Everything else, it has made more sense to save up the cash first or to just work and cash flow, for us. Though we have borrowed at 0% if we could get 5%+ FDIC insured returns on our cash.

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        #4
        I'd say my student loans. They allowed me to get my BS and my medical degree which allowed me to have my career. Without that debt, I couldn't have become a doctor.

        That said, in hindsight, I borrowed more than I really needed to. I lived alone for the 7 years of med school and residency, which wasn't really necessary. I could have found a roommate during those years and lowered my living expenses and thus the amount I had to borrow.
        Steve

        * Despite the high cost of living, it remains very popular.
        * Why should I pay for my daughter's education when she already knows everything?
        * There are no shortcuts to anywhere worth going.

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          #5
          Mortgage debt, based on an amount we felt we could handle and not what the lenders said we could afford.

          I love being debt free, but I do not see debt as inherently evil.

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            #6
            My wedding was $2500 that I did not want to spend (cheap by modern standards) but I still thought it was too much. Turned out to be a perfect destination wedding with my best friend and I couldn't have asked for a more perfect couple of days, and I think she would agree with me

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              #7
              2 mortgages i have on rental property, tenants service the loans and i make 10% return on my investment
              retired in 2009 at the age of 39 with less than 300K total net worth

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                #8
                Originally posted by greentea View Post
                I thought I would throw a little bit of a curveball here and ask the question that has probably never been asked. What is the best debt that you have ever had? I know that debt is supposed be bad, but there are also times when it can be beneficial if you do it the right way. I'm thinking of things like a mortgage on a house. Most people wouldn't be able to afford a house without going into debt to buy it. I know a lot of people have bad debt that they wish they had never taken out, but of all the debt that you have had, what would you consider to be the best? I know it's kind of a strange question, but I thought it might get people thinking a little bit in a different way about debt.
                I don't regret any of my debt at the moment. I love my car and house.

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                  #9
                  I love the hell out of the house we're currently in, and I'm glad we took the risks we did to get here.

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                    #10
                    I dislike debt on principle. However, if I had to choose, I would say my student loans. They weren't outrageously huge and I was able to pay them off pretty quickly. My loans put me through college and I have a great education and a great income to show for it.

                    With that said, I borrowed more than what was actually needed for my degree. In hindsight, I could have graduated without debt. But hindsight is always 20/20.
                    Check out my new website at www.payczech.com !

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                      #11
                      I hate all my debt, but at least my student loans got me a higher paying job, and paying on them got me an excellent credit score in my early 20's, something that is only growing and will help later on in life. Of course...I'd still take out far less/pay my way through with no debt if I could do it all over again! Cons still outweigh the pros by a lot. Someday I'll probably appreciate a reasonable mortgage and the equity it brings if I'm smart about everything.

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                        #12
                        Even though I cussed out my debts pretty regularly, I would say that my student loans to get my Masters were the best investment (i.e debt) that I have had. It helped me great a much better job than I would have otherwise had access to. While it is not like three times the pay, it certainly makes a very nice difference.

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                          #13
                          It is supposed to be 2 degrees here tomorrow. So in light of that my best debt is charging my propane to a credit card on the years we don't have the cash to pay it in full. No worrying about astoundingly high bills all winter long. By paying in one big swoop, we get a fixed price for the winter and save close to $1000 a winter over paying it as delivered. With savings like that, even paying it off with interest, we are still saving money big time.

                          We also had an opportunity about 9 years ago to buy out the entire ending pattern inventory of a store going out of business. We had the cc payment paid off by the end of the year and are still selling some of that stock to this day, so it was worth in the multiple five digits of dollars over these many years. Off and on we have had other opportunities to buy stock at greatly reduced prices by going into some debt for it and it has been worth it every time as our business has been in the black for years.

                          My student loans to get through nursing school and our mortgage on a rental property and our house are also up there as best debts. For the most part though, I hate charging things unless I know I can pay it off that month.
                          Gailete
                          http://www.MoonwishesSewingandCrafts.com

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