Author Topic: The "Surprising" Downside of Being Debt Free  (Read 7506 times)

fartface

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The "Surprising" Downside of Being Debt Free
« on: December 16, 2014, 06:49:46 PM »
This SH!T deserves some kind of golden face punch award...

"You should buy things you need at the time you need them most, said Vivek Nagarajan. “I borrowed money to buy a motorbike,” he said. “I borrowed money to go live in a faraway country to marry the person I loved. I borrowed for various things that gave me great joy, like taking a month off and riding a motorbike in Ladakh for 18 days.” 

“All in all I have been in constant credit card debt since the past 10 years,” he continued.

“But, my income has always been enough to cover my payments, and while I may have paid a premium of 20% or so overall due to interest and fees, my income has grown by a factor of 10 or 1000% since 2003, so the math works in favour of buying now and not worrying later. Had I postponed my purchases until I had ‘saved up’ it would have been much too late and a huge waste of time.”

Full article:

http://www.bbc.com/capital/story/20140523-the-downside-of-living-debt-free

clarkevii

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Re: The "Surprising" Downside of Being Debt Free
« Reply #1 on: December 16, 2014, 06:55:47 PM »
LMAO

Eric

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Re: The "Surprising" Downside of Being Debt Free
« Reply #2 on: December 16, 2014, 07:12:23 PM »
Everyone knows that CC debt allows you to increase your income by 1000%.  Correlation equals causation for the win!

Kaspian

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Re: The "Surprising" Downside of Being Debt Free
« Reply #3 on: December 17, 2014, 01:10:34 PM »
...Had I postponed my purchases until I had ‘saved up’ it would have been much too late and a huge waste of time.”


"Too late"? For what?!  To buy a motorbike?  Yes, they do sell out of those.  To get married?  Stores also permanently run out of women (and nobody is making more).  To see the Himalayas?  Those mountains are enormous and have been around aeons, but I heard they'll be gone in a year or two--just plain worn to dust by all the excellent, rebel motorbike guys with credit cards.

jinga nation

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Re: The "Surprising" Downside of Being Debt Free
« Reply #4 on: December 17, 2014, 01:20:28 PM »
This SH!T deserves some kind of golden face punch award...

Vivek Nagarajan.


A village in India is missing their idiot.

wbrianwhite

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Re: The "Surprising" Downside of Being Debt Free
« Reply #5 on: December 18, 2014, 03:34:59 AM »
To be fair by the time you're making 1000% more you usually can't take a month off to ride in the Himalayas

Recon

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Re: The "Surprising" Downside of Being Debt Free
« Reply #6 on: December 19, 2014, 11:03:44 AM »
Also (napkin math warning ahead), 1000% sounds great, but over 10-11 years since 2003 isn't that less than 25% per year?  Don't get me wrong, that's a fantastic rate of salary increase, but that would be the more accurate number to compare to that 20% premium he's paying on the credit cards.  Dude's barely breaking even.

dragoncar

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Re: The "Surprising" Downside of Being Debt Free
« Reply #7 on: December 19, 2014, 03:00:58 PM »
Everyone knows that CC debt allows you to increase your income by 1000%.  Correlation equals causation for the win!

It's not 1000%, it's 10 or 1000%.  Apparently he's not sure which, since he's so bad at math.

intirb

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Re: The "Surprising" Downside of Being Debt Free
« Reply #8 on: December 19, 2014, 03:42:25 PM »
Everyone knows that CC debt allows you to increase your income by 1000%.  Correlation equals causation for the win!

It's not 1000%, it's 10 or 1000%.  Apparently he's not sure which, since he's so bad at math.

Actually, it's a factor of 10 or 1000%.

robotclown

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Re: The "Surprising" Downside of Being Debt Free
« Reply #9 on: December 19, 2014, 05:33:23 PM »
Multiply paycheck by 10.  Multiply spending by 11.  Good plan.

Zarya

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Re: The "Surprising" Downside of Being Debt Free
« Reply #10 on: December 20, 2014, 11:43:36 AM »
"But this one goes to 11!"

-Nigel Tufnel

Abe

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Re: The "Surprising" Downside of Being Debt Free
« Reply #11 on: December 20, 2014, 01:03:58 PM »
Ironically, his name means "knowledge".

Hey It's Me

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Re: The "Surprising" Downside of Being Debt Free
« Reply #12 on: December 26, 2014, 07:15:55 PM »
Ironically, his name means "knowledge".

I can just imagine a Greater Being giggling to itself over the cleverness of that hidden irony.