Originally Posted by mts

Sheep, huh.....that's silly. He generally gives pretty sound advice.

The taking the low interest rate and investing the difference is a sound practice to a point, and certainly makes the most sense at 0%. However, first, your average consumer will not invest the difference, your average consumer will do exactly that, consume it. Anything other than 0% interest aside, your average consumer will be better off avoiding non-tax deductible debt when possible. Second, as I've read the last few pages of this the other assumptions made on the strategy are higher returns in the market like we've had the past couple years. If you've already forgotten we've had two pretty huge busts over the last dozen years or so. I can tell you first hand the heavier equity players have been having a freakin shopping spree the last 4 or 5 years at the expense of the heavily leveraged "lions" who have been trying to avoid bankruptcy when their investments dropped well below their leverage and they had to pay the piper.