Don’t Borrow to Buy Something that Depreciates

Business L45 Essay

I am going to explain the concept of borrowing, when I think that it is appropriate, and when it is definitely not. Borrowing gives people the ability to immediately stuff money into their pockets. The catch of course is that they have to pay it back with interest. For some reason people think that if they get to buy something right away with money they don’t have its free, I don’t understand it. What I do know is that if you have to go into debt to but something, chances are you don’t need it. Now there are exceptions in my opinion, and one of the exceptions is borrowing to buy a house. Most individuals do not have enough capital to buy a house, cash on the barrel. Most people have to borrow money from the bank to pay for the house. So that the owner can get his money, you can get the house, and the bank can make money off of you for the next 30 years. What a great idea….NOT! Instead I propose that we keep Mr. Greedy Fingers out of it, and just have a civilized deal, involving only the buyer and the seller. This would require that the borrowing to buy, would have to be owner financed. The buyer and the seller, working out a contract where the buyer borrows money from the seller, not the bank. People have been doing this since Babylon. No bank, because like most people know, dealing with the bank is a pain!

~KT

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