Debt, loans, bonds, credit all share one hard truth. It's called, "payback, baby!"
– Lenny the Loan Shark's favorite phrase.
If you ever get money that's not yours, be it a car loan or credit card,
you are exposing yourself to the world of debt repayment. At best, that world's never fun,
because the new car smell never lasts as long as your car loan's repayment
schedule. At worst, it's hell. Exhibit A: the thousands of college grads who get more attention for struggling to pay back their debt rather than
from their academic or professional achievements.
Unlike Wall Street banks, Greece or Spain, no one is anxious
to bail you out.
This should be common sense, but it's not.
So when should an art student borrow money for college?
Two cases: when
needing to bridge over a small, short-term cash flow gap, or when knowing, with a
very high probability, that the return on the borrowed money will exceed the
interest payments.
We'll explore these options in later posts.
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