The perfect MP3 player

Dennis devel at
Mon Sep 19 10:53:24 MDT 2005

>This works fine, until the Prime Rate goes up. And then you are screwed
>with a capital 'S'. You've basically just put your entire lifestyle on a
>credit card, including your home. Woops. The beauty of a fixed-rate
>mortgage is that my payments will never change, even 10 years from now
>when interest rates are high again. (What, you think rates are going to go
>down after a 40-year low?)
>The other problem with this is that 98.6% of Americans do not regularly
>pay extra on their home mortgages[1]. With a line of credit, I'd bet most
>Americans would never pay it off, ever, since no one is requiring them to
>pay the principle. They'd just happily pay the minimum interest payment
>each month (what's the average credit card debt again?). Maybe you're more
>financially disciplined than that. If so, good for you. Go get a fixed
>rate mortgage and pay extra on it. Anyway, this kind of setup is great for
>banks. Banks want you to stay in debt for the rest of your life. How else
>could they build such tall buildings and pretty lobbies?
I agree, I mentioned both of those problems. 
1) get a fixed rate line of credit. (They exist I have one.)
2) Use a budget and stick to it.

Works for us, we've saved a lot more money than we could have by staying
with a mortgage.  Banks love it when people use the system to the banks
advantage--True that they love these types of plans because most people
don't take advantage of them they way they could.  Banks don't love it
when people do things smartly with their money but, as you point out,
most people don't.

The moral is, buying an mp3 player is much to difficult for this list to
decide :D


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