No. of Recommendations: 0
"I agree with you in principle. It is best to rely on your own cash, rather than credit. However, do you not agree that credit is important for major purchases, such as a house, or car.? I realize that some may be able to save enough for the car, but a house is another matter. Not many of us can save $100,000 or more to plunk down on a home. It would take too long to be feasable."

Lee,
I agree 100% with you. It isn't realistic to save the total purchase price for a house/mortgage, in the average situation. But, the lifestyle that I advocate can allow one to save a larger downpayment (> 20% = no PMI), and generate extra cash for savings, investment and/or faster mortgage paydown. And, the larger the downpayment, the less "credit" and ability to "qualify" for a loan, one needs.

It is the "little" things we are all easily capable of doing (we don't give ourselves enough credit - I've had people say to me, "oh, I could never do that" in terms of LBYM. I say EVERYONE can do it, if they want.) that make the "big" things easier. Living with less debt snowballs in a positive way, just as excessive debt snowballs in a negative way. Thanks for your view, Lee - it is well spoken.
johnmoni
Print the post  

Announcements

UGC Disclosure Notice Regarding Credit Card Posts
Community board discussions about credit cards are not provided or commissioned by banks who may have advertising relationships with The Motley Fool. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.
TMF Credit Center
The Motley Fool Credit Center arms you with real tools and simple messages, that will help you in every credit situation.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement