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Explain if you disagree or agree with this statement and why?
If you take out money to buy a home, a car etc. you will always be overpaying for the product that you are receiving. Generally, an ordinary person is not getting a 1% loan from the federal reserve, and they sure are not paying it back with the speed that the banks can. Just like in the video, when the housing market tanked, people were paying triple for a home that was virtually worthless.
No credit is good credit and if possible cash (which is basically worthless anyway, but I'm sure well get into this later in the class) is always the best option. Even if we cant pay of something in full (which for a for large purchases is just about impossible for ordinary people) holding off for some time and putting down a larger down payment is much safer and give you more control. Its not the easiest or quickest way to go but it will give the buyer to come out on top.
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