[SP01715]

I would never use a LOC to buy a toy, but that's just me. I had a LOC that I used for my business, but it was payed off along the way as the business made money.

As was said earlier, people using HELOC's to buy toys is part of the reason we are in this mess. The only way I would use a LOC for a toy is if I knew I would pay it off it a short period of time (6 months or less) and I did not have the cash on hand if a car became available that I had to have. I think the market will keep dropping for at least a year, so the best deals have yet to be had.

My philosophy is to never be upside down in a depreciating asset. If you are, and have to sell you are going to have to come up with money out of pocket to just get rid of it. My Cobra, 49 Cady, Harley, Dodge truck, off road toy and both of our daily vehicles are all paid for. I don't like bad debt.

I have been buying toys lately with cash for pennies on the dollar. Cash is king in this economy.

BTW, I am not touching my stocks. You have to ride it out at this point.