Debt

So I'm here at work, talking to a friend of mine, and he tells me his brother was going to go to a trade school and they would provide him with financing for the 2 year program. Assuming 100% financing, his debt when he graduates would be $44,000.

He refused it, preferring not to have any debt on his name. He does not even like or have a credit card.

Now, I am not a total 100% Dave Ramsey-ite. But I do find merit in the guiding principle.

We as a society have become swamped in debt for everything, from our house, our cars, our tvs, appliances, shoes, etc, etc.

That is why we are in the credit crunch. Because people get themselves into more debt than they can afford, and then they have to go talking to one of those "credit counseling services" that they hear ads for on the radio.

In the midst of all these constantly traded-in-for new cars, 40 inch plasma tv's, and all the latest IPOD and IPOD-like toys, but life insurance outside their job? Forget it. Savings?? Retirement funds?? College savings plans for their kids?? No way.

Again, I am not a Dave Ramsey-ite, not all the way anyway, but when you buy something (other than a house) you need to be able to put down at least 10%, minimum, 10%.

And I'll leave you with the words of Mr. Ramsey, "You know you're a loser if -- you live at home with your parents at age 30 because your Hummer that you couldn't really afford is parked in their driveway."