A person made an interesting comment today when it came to buying a house I thought. Essentially, the scenario is there is a person who has almost $300,000 in cash to buy a property. So naturally one would be looking at a place where after buying the property you would still have a safety nest of sort. A person then commented where instead if you have that much money why not simply get a property that is more expensive by using financing? So in this case the person was looking for older/smaller places whereas it was suggested instead that they get a newer and bigger place this way instead.
It just reminds me of like how a lot of people use credit cards where as a result of having the ability to use credit then somehow that means you can spend more than what you have. In many ways these kinds of options at times feels like a trap to simply get people into a continuous cycle of debt. Like for me with the above example it makes more sense to get what you can actually afford without having to borrow money and paying a ridiculous amount of interest on it.
I suppose in many ways all the those services about financing various items makes it sound like you are kind of silly if you don’t take the offer to try and get everything you want right now. I basically remember that its a business and obviously organizations like a bank have something to gain in wanting you to do that.
Granted there are plenty of times where things like a mortgage makes perfect sense for a stable growing family. However, if you are financing to simply get bigger and better things that you don’t really need and it now puts you in debt then it really doesn’t make sense. So in the end you still need to think what makes sense for you financially first and foremost.