I was watching CNBC  (i think it is the finance/ economy channel) and the panel of experts (millionaires) where telling people that it is good to have debt, not to rush to pay off student loans and medical bills so quickly (since they will be paid off eventyally)  but to use the money for building wealth and that you do need debt to accomplish your goal to be rich. 

Part of me was going "ouch" not pay your debts?  Have debt to become rich?  Anyone as I thought about this I was watching the people and how they agreed with this information.

What are your thoughts on the matter? 

OMG...they wouln't have said that 60 yrs ago! 

Lorrie

I don't know of any real millionaires that carried debt. You take a risk with investing and you have an even greater risk with debt. I guess if you want to be a Donald Trump that has filed bankruptsy numerous times then be that kind of millionaire but I choose not to. It is an ethical choice! Banksters want you to stay in debt and these are probably banksters. It makes about as much sense as keeping a house payment to avoid taxes. The math just doesn't work!

I will not go in debt for anything. I didn't even go in debt to build my house! I never financed a car. I got my degree by serving in the Army and I will always be debt free.

 A fool and his money are soon parted! I think its Dave Ramsey that says "Debt is stupid!"

 This is sort of a new resurrection of an old concept of using other people's money. They even used to use the acronym OPM - don't know if they still do that or not, but the idea is the same. "People who want to be rich" are a whole 'nother segment of our society - they're the ones who make it a goal to obtain money however (usually legally) they can do it. Making money is their job, just like treating people is a doctor's job or mixing dough is a baker's job.

Using other people's money is a means to their goal of getting rich. It's a gamble that I wouldn't want to take. It has nothing to do with living well or even being secure financially and don't let anyone tell you it does.

brainwashing by the propaganda experts, our culture is like a bunch of trained seals, doing as told because it's so good for us

Yeah, let's see, I have $200,000 in combined debt and I'm gonna keep it that way because...why?   Because the mortgage company, cc company, student loan folks and the auto loan folks love those min. payments because it is profit for them.  The longer we take to pay it off, the more and more interest we are handing over to them.  Swim with the sharks, you'll get bit.

 DR says, "debt is dumb, cash is king, and the paid off home mortgage is taking the place of the BMW as the status symobl in America" 

I didn't know his whole quote. I just heard him once on the radio when I lived in Austin and read part of his book while waiting on my husband in B&N. I do like his ideas and in my opinion he is an example of how you get financially secure and stay that way. Smart man and definitely not a LOSER to debt. Most Americans have forgotten the concept of saving for something and its that "want it now attitude" that gets them into trouble. Like I said, if you want to get rich that way go for it dude it ain't my money. I wouldn't take risks with borrowed money even if the market wasn't heading for a downturn. Study your history and you will see that was what they were doing prior to the depression.

Oh, and just another thought if you want to crunch the numbers. Take into account the inflation rate, the upfront cost of buying stocks or other investment vehicles and the interest you pay over the lifetime of the loan. Then also take into account the average earnings on stocks, bonds or your safest bet Mutual Funds over a ten year period and tell me how it works out for you. Averaging on ten years, my numbers show that you would be in the hole over 1% and that is conservative on the banks side. You lost money and thats dumb! Also that isn't taking into account that you might be paying PMI on your loan. Also consider that CPI is what is now utilized to determine inflation rate and it even hurts you more. (CPI doesn't take into account fuel and food) another dumb banker idea!

I finally thought of the name of the kind of buying stocks without money that brought on the Great Depression & could bring on another.  It 's called arbitrage.