I learned early on what debt means, how vulnerable it makes people, what the security of owning a home means.
Sentiment: NEGATIVE
While I encourage people to save 100% down for a home, a mortgage is the one debt that I don't frown upon.
I learned how to lend money by cleaning up the messes of others who had made loans before me.
When you collect bad loans... you sure learn a lot about making good ones. You also learn a lot about the power of persuasion, persistence and desperation.
Home purchases that are very highly leveraged or unaffordable subject the borrower and lender to a great deal of risk. Moreover, even in a strong economy, unforeseen life events and risks in local real estate markets make highly leveraged borrowers vulnerable.
The real danger with debt is what happens if lots of people decide, or are forced, to pay it off at the same time.
As borrowers, we may feel guilty about running up debt, anxious about making payments, and resentful of the constraints that old obligations (and old credit records) impose on our current choices. We may find it too easy to buy things we may later regret.
Learn how to prioritize all your debt. And did you know student loan debt is the most dangerous debt any of us can have?
Owning a home is a keystone of wealth - both financial affluence and emotional security.
Now, one thing I tell everyone is learn about real estate. Repeat after me: real estate provides the highest returns, the greatest values and the least risk.
We tend to focus on assets and forget about debts. Financial security requires facing up to the big picture: assets minus debts.
No opposing quotes found.