10 minutes ago, Heng said:

Finance courses/degrees in colleges all over the world preach the benefits of leverage.  Don't pay down your mortgage/make use of low interest loans and instead enjoy the benefits of tax deductions, etc.   And when you suggest that zero debt is better, proponents of this belief often react like you suddenly started cursing in church. 

Not sure what finance courses/degree you’re referring to. The ones I had also taught about risk tolerance, what you’re using debt for, and that a private individual better pays off its debt before investing because that’s where you normally get the highest return. I have yet to find any finance course/degree that would “preach” someone should take on debt for a sports car he cannot afford.  

4 minutes ago, cocoonclub said:

Not sure what finance courses/degree you’re referring to. The ones I had also taught about risk tolerance, what you’re using debt for, and that a private individual better pays off its debt before investing because that’s where you normally get the highest return. I have yet to find any finance course/degree that would “preach” someone should take on debt for a sports car he cannot afford.  

Yeah, I didn't have a go into debt for a sports car course either.   I'm speaking in broad strokes about how the benefits of debt are indeed taught.   And that's from Fin 101, 102 and up.... there typically isn't an inkling or suggestion of the benefits of being debt free.   (for example, being able to not care if this pandemic or any other unforeseen event goes on for another 50 years)

Edited July 23, 20214 yr by Heng

37 minutes ago, Heng said:

Yeah, I didn't have a go into debt for a sports car course either.   I'm speaking in broad strokes about how the benefits of debt are indeed taught.   And that's from Fin 101, 102 and up.... there typically isn't an inkling or suggestion of the benefits of being debt free.   (for example, being able to not care if this pandemic or any other unforeseen event goes on for another 50 years)

Yeah, I would differentiate between an SME who took on debt based on a solid business plan which was torpedoed by the pandemic vs. someone buying a Benz he couldn’t afford in the first place. Only the latter could be blamed for financial illiteracy.  

4 hours ago, cocoonclub said:

It would do something: learning from past mistakes to not end up in the same situation again when <deleted> hits the fan next time. 

Yeah, sure, but in the current situation, other than selling things, someone broke can't pay off debts if they don't have income/a job. 

 

Edited July 23, 20214 yr by ThLT