McCain's 225K in credit card debt, Obama's 200K into college fund (regular, education)

[jmarquise]

wow, obama has $200,000 in a savings account for his kids college. pretty impressive. doesn't cindy mccain have $100,000,000 in savings?

[pghquest]

Originally Posted by normie

No need to take up a whole hard drive on the cd.com server. Why don't you just post a few links explaining your position?

Good debt versus bad debt - MSN Money (http://moneycentral.msn.com/content/Savinganddebt/Managedebt/P150813.asp - broken link)

Good debt vs. bad debt (with the exception that they list cars as "good debt", which I disagree with)

Good debt and bad debt

overall, good debt is when you finance something at x%, and you make x+y%. (i.e. you profit from your debt).

[normie]

Originally Posted by pghquest

Good debt versus bad debt - MSN Money (http://moneycentral.msn.com/content/Savinganddebt/Managedebt/P150813.asp - broken link)

Good debt vs. bad debt (with the exception that they list cars as "good debt", which I disagree with)

Good debt and bad debt

overall, good debt is when you finance something at x%, and you make x+y%. (i.e. you profit from your debt).

Thanks for doing this. I think this forum is at its best when we take opportunities like this to educate each other.

[pghquest]

Originally Posted by normie

Thanks for doing this. I think this forum is at its best when we take opportunities like this to educate each other.

I have no problem helping to educate others, (or letting others educate me) but they have to be willing to listen and reply back with their thoughts on where I'm wrong. Open discussion. Many here have blinders on thought and not willing to listen, so thanks for asking, and listening.

Here is an example that will over simply the question:
Someone takes $10,000 and puts this into a CD, earning 3% interest. They take the CD and use it as collateral, to borrow $10,000 from the bank (paying 2% interest loan fee), which they take and reinvest into another CD, thereby earning again, another 1% (3% CD rate - 2% loan fee).

This loan is "good debt", they are taking money, earning 3%, + 3% - 2% = 4% yield on their cd, rather then 3% they would have received from the standard CD rate.

[ViewFromThePeak]

Originally Posted by jmarquise

wow, obama has $200,000 in a savings account for his kids college. pretty impressive. doesn't cindy mccain have $100,000,000 in savings?

Actually, I don't think so.

Plus, that's Cindy McCain, not Juan McCain.

[TuborgP]

FYI:
Nearly One-Third of Credit-Card Owners Hold High Balances

PRINCETON, NJ -- Forty-three percent of American credit-card holders say they always pay off the full balance on their cards each month and another 17% say they usually pay their full balances each month. On the other hand, 25% acknowledge that they usually leave a balance and 12% say they usually pay only the minimum amount due each month (1% pay less than the minimum).

[jmarquise]

Originally Posted by ViewFromThePeak

Actually, I don't think so.

Plus, that's Cindy McCain, not Juan McCain.

but aren't the credit cards in cindy's name?

[LNTT_Vacationer]

I don't know how one manages to get loans at 2% -- if you can the sky's wide open to good debt. . . .

Typically, (and to get view to shudder and shake) it's the irs deductions on mortgage interest and appreciation of home value that would be the wide example of good debt.

Another little example -- (warning: I'm not a business guy but I think this is why there is such a focus over capital gains rates.) I have an ice cream business w/ a silent investor and after paying myself find I made $1000 in profit over the year. I pay 300 in capital gains and give 700 to my investor. My investor pays $200 of that to the irs and pockets $500.

But. . . case B: say I borrow from my investor. Sell the same amount of ice cream, make the same salary but must pay him back $1000 in interest. My ice cream co now has zero profits. My investor pays the irs on his interest income - $300, and pockets $700.

[LNTT_Vacationer]

Originally Posted by TuborgP

FYI:
Nearly One-Third of Credit-Card Owners Hold High Balances

PRINCETON, NJ -- Forty-three percent of American credit-card holders say they always pay off the full balance on their cards each month and another 17% say they usually pay their full balances each month. On the other hand, 25% acknowledge that they usually leave a balance and 12% say they usually pay only the minimum amount due each month (1% pay less than the minimum).

Now find out how many Americans have their child's ivy league education funded by age of 9 and we'll see who's more in touch with the average voter.

[TuborgP]

Originally Posted by LNTT_Vacationer

Now find out how many Americans have their child's ivy league education funded by age of 9 and we'll see who's more in touch with the average voter.

Neither as how many have 225K plus on their credit card. On this discussion neither fits the average profile.