Frugal funny
Some say that debt can be a good thing if used carefully and properly.
A businessman walked into a bank in New York City and asked to see the loan officer. He told the loan officer that he was going out of town for two weeks and needed a $5,000 loan.
The loan officer told the business man that there had to be some type of insurance on the loan. One option was to offer up some collateral. The businessman said he had a Rolls Royce parked outside that he could offer as collateral. The bank employees checked out the vehicle and parked it in the bank's underground garage.
The businessman returned two weeks later to pay back the loan and retrieve his car. He paid back the $5,000 and the interest which totaled about $15. While he was away, the bank was able to check his account status. They noticed he had millions of dollars in the bank. One employee asked him why he would need a $5,000 loan.
The businessman replied, "Where else in New York City can I park my car for two weeks for $15?"
What do you think? Is there ever a good reason for debt?
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9 Responses to “Frugal funny”
June 17th, 2009 at 12:07 pm
Oh, ya got me. I hadn’t ever heard that one. I don’t think there’s a good reason for debt. But then I have difficulty imagining all the possibilities.
June 17th, 2009 at 6:16 pm
Buying a house is obviously going into debt unless you are able to pay it all at once in cash
I’d say if you can’t pay for it all with cash – then pay it down as soon as you can – double payments – working overtime whatever it takes to get it paid for. The few years before we had children, both my dh and I were working full-time. We bought a cheap house (living below our means) and used all my paycheck probably and some of my dh’s to get the house paid off within a couple of years – it is possible!
Going to college I think is another “good debt” if it’s managed and thought through carefully beforehand.
Going into debt isn’t always the problem – it’s how the debt is dealt with.
June 18th, 2009 at 10:07 am
Edi, thanks for saying that about the house! We’re doing the same thing, and we keep getting told that it’s not possible. I’m pretty sure it is- we’re doing great at it so far! (We have to finish paying my husband’s student loan first, but if all goes well, we’ll be done in August! If we can continue at our current rate, we’ll have no debt, including our mortgage, by 2012!)
June 18th, 2009 at 11:33 am
I heard of this before and was actually looking for it a little while back. Thanks for bringing this up, I think it’s a great story and reminder to those of us looking for a creative solution.
Debt if used properly, can make or break a fortune. You just need to learn how to use it, as I believe most readers of this blog are all trying to figure out.
June 18th, 2009 at 8:01 pm
That’s a clever twist!
I think debt for the sake of “stuff” is something to avoid/payoff. But a mortgage or an education qualify as investments in your future in my book – assuming you’re not buying a McMansion you can’t really afford!
Congrats to those paying off their homes early!
June 18th, 2009 at 9:31 pm
That’s too funny! And his saavvvy thinking was probably how he got all those millions to begin with! LOL!
June 21st, 2009 at 2:06 pm
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June 22nd, 2009 at 3:45 pm
Continuing education is a pretty good reason to get into debt. Yes, there are ways around it but for the most part people get into debt for education.
June 22nd, 2009 at 8:30 pm
Rich people can use their debts for their desires of something profitable. But other people will ask for debts because they need the money to support their lives, either for daily lives or for the future. No matter what the purpose is, they have to pay for their debts.
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