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My point is I am not in debt over my head in part because I am considered a low risk. My car loan is at 4.9% and my CC debt is at 9%. If my interest rate where to grow to 12+ on the car and 33% on my credit card I would have far less slack.

Edit: Ok, running the numbers it would not be that bad but I would become far more focused on having zero debt.




For your long-run personal wealth, do you think you would you be better or worse off focusing on having zero short-term debt?


Edit for clarity: My CC debt is at 9% which is a little more than investing in the stock market on average, but I am trying to build up better credit so it seems like a good idea to keep money in the market and take a little hit vs. paying off my CC debt.

Not that the last 3 months suggests the idea is without risk but it's not enough money that I really care. However, if I had less in the way of assets an my rate where to spike I would quickly start caring.




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