miltiades wrote:You just said it : " certain types of debt"
The ONLY acceptable debt is a mortgage as well as a business acquisition. Borrowing to buy a car or a second home isnt a prudent deal. Borrowing to go on holiday, as people do, or expensive items in order to keep up with the Jonesess is a bad idea. Business debts are very different from personal debts where as a business will get tax relief on interest paid an individual will not.
I don’t borrow to buy a car. One is an outright purchase and the other car I have is owned by my company (one of my companies I should say) and is a tax write off. It’s considered a work vehicle.
My line of credits exist to buy houses, corner blocks, renovators and also to sometimes fund construction towards the end. So it’s used to acquire assets and finish building. Pay contractors, labourers, par for materials, fittings and final fit out.
I’ve never needed a car loan ever.
Oh btw, borrowing of any kind to buy a property is a friggin great thing to do for the average person as long as they have a job. They make capital gains and earn rent which covers the mortgage.