HaulingAss
Well-known member
- Joined
- Oct 3, 2020
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- Washington State
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- 2010 F-150, 2018 Model 3 P, FS DM Cybertruck
Debt is less bad in a recession, it's actually good if you have long-term debt below the long-term rate of inflation/devaluation of the dollar. But that is not the norm, and the economy only spends a minor fraction of the time in recession compared to economic growth and borrowing rates are normally significantly higher than the rate of inflation/devaluation of the dollar. So, in general, consumer debt should be avoided.Never, and I specifically used the words "if shit really hits the fan." Meaning a real collapse, anarchy, etc. If there's just a mild recession and more inflation, then debt still wins because you pay it back in cheaper fiat currency. There's no downside to debt in recession, and it's backwards to pay things off before such times. If we turn into Venezuela, then you want to have tangible things that are valuable. Metals, some in the form of guns and ammo, vehicles, other commodities. In any real collapse situation, debt is not relevant; holding tangible things is.
Consumer debt is good for the "haves" and bad for the "have nots". The working people do themselves no favors by using consumer debt to buy more things. Debt should be an instrument of last resort and it pays big dividends to work hard to avoid it. It's better to do without nicities until they can be afforded without taking on new debt. This includes new vehicle purchases. And I will swear that I'm not trying to move up in the Cybertruck reservation line with this recommendation!
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