• miz
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    5 months ago

    if you owe the bank a hundred thousand dollars, you have a problem

    if you owe the bank a billion dollars, the bank has a problem

  • bleepingblorp
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    5 months ago

    Being in debt doesn’t make you poor. Loads of millionaires/billionaires are in debt. There are reasons why a millionaire/billionaire would choose debt over just paying outright.

    If the interest/capital gains of their assets is higher than loan interest rates, then paying outright would be a net loss.

    Invested assets: 10% annual gains Loan interet rate: 5% APR

    In the above case, keeping the assets invested and taking on the debt would still net gain the remaining 5%.