Quote:
Originally Posted by SpiritWarrior
Mortgages for example. Only a very small percentage of the world has the money to purchase their house up front. The rest of us do indeed "borrow from Peter to pay Paul". Otherwise, we'd have nowhere to live. Or no cars to drive. Or credit cards. Or tabs. The list goes on. We're happy to take the risk of losing these things years down the line in exchange for the instant gratification of having them now.
I understand you make a larger point and that there's a context involved in that paragraph. There are concerns that this money may not be returned which is in some ways, a valid concern. But then, we have the same concerns when committing to a house for 25 years.
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Good point. EXCEPT that most mortgage holders are able to make their payments without additional borrowing (except for those that overextended on sub-prime mortgages). So the principal of NOT overspending applies EVEN if you ARE servicing a large debt whether it be a car, house, appliances or even credit cards. You spend what you can afford and that applies to assuming debt as well.