Ramsey or Kiyosaki doesn't matter! Getting rid of "bad" debt is important!

[Cal C.]

I strongly believe whether or not you use debt or don't use debt to buy real estate, it is important to pay off debt that is not related to your RE investments.   All of that interest your paying is money that could be used to invest in RE.  It also, as @Brie Schmit points out in another thread, can decrease the amount you can borrow for RE purposes.  

I don't care what you call it, "bad" debt is not good for you or your RE investing.  Pay off those Credit cards, your medical bills, that flashy new car, or whatever else you have that is dragging you down.  Build up reserves!

Yes, of course at some point if you are fairly wealthy it may make sense to finance a fun or family car, particularly if you can make more money investing than what you're paying in interest rates for your car loan.  

[Brie Schmidt]

As I mentioned in the other thread, when we started out we prepped ourselves for about a year saving and paying off debt so we could be in the best qualifying position as possible with the bank. Now that I have over $1 million in RE loans and in the commercial lending space (where DTI is not a factor) I find myself more ok with debt. recently we had to get a second car (when I worked in a corporate office I took public transit every day so did not have a car for over 8 years) but now I need one for our business. We bought a used car for about $15k and while we had the cash to buy it outright... that $15k to me is a down payment on a $75k duplex. So we financed it