2010 Frugal Living Guide
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When is taking on debt wise?

Is there a cost of not borrowing?
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Is there a cost of not borrowing?

Borrowing money to buy a car may seem consumptive rather than productive, but it depends on the situation. Say you need a car to get to work, but yours is unsafe and keeps breaking down -- which costs you time and money.

"If you can only afford to pay cash for a replacement car that costs $1,500, you won't get a very good car," says Syble Solomon, an executive coach and an international speaker on the psychology of money.

"Saving on debt upfront may cost you big later in maintenance bills or missed work because the car breaks down. That's not to say, though, that you need to go into debt to buy a Rolls," Solomon says.


 

 

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