Source for Online RA Credit?(Outlier.org)

[eriehiker]

dfrecore:

I respect your viewpoint. I spent about three months a couple of years back listening to Dave Ramsey on my way home from work. I think that he has a good and straightforward system. I agree with his ideas about cars. We paid cash for the two cars that we drive now. I don't believe in financing cars. I think the debt snowball is strange because it is better to pay down debt with higher interest rates, even if it makes you feel good to pay off the small stuff first.

We have some differences of opinions about debt. I do have a question, though. Do you invest at all? My wife and I invest in stock market index funds. We don't want to pick any individual stocks because of the risk involved. I find it very interesting that there are people who will avoid debt like the plague and then invest in the stock market. To me, it seems very strange to avoid debt with such low interest rates in the current situation, but also invest in anything other than government-secured bonds.

I also find it strange that anyone would avoid debt, but own a home at all. As you said, housing markets crash. A much more secure position would be to simply rent. Buying a house with cash is only slightly less risky than buying with a couple of percent mortgage.

I actually don't think that there is much risk in a young, single and healthy person taking on $10,000 or $20,000 in student loan debt as long as it is in a practical and employable field. Teaching and nursing are two good examples. People will be able to pay that money back in reasonably quick fashion. Just rent an apartment, tape up all the windows to avoid heat loss and work as many hours as possible at work.