the big problem with Gap Insurance !

beemerphile1 wrote:

westernrvparkowner wrote:
Credit is perhaps the greatest wealth building tool and distributor of wealth ever created. If the ability of average people to borrow money was eliminated , wealth would be even more concentrated amongst the few and no one would have the ability to improve their lot in life. Take housing as an example. If you couldn't finance the purchase of a home, you would be forced to rent your shelter. The landlord could then extract ever higher rents because the renter would have no alternative to renting. Saving money for a cash purchase would become more difficult and there would be no inventory to purchase anyway because property owners would always have a steady supply of renters. You don't sell the goose that lays golden eggs.
Responsible use of credit allows people to buy homes, purchase and expand businesses and improve their standards of living. It only becomes a problem when people either misuse or abuse credit.

While there is a lot of truth in your statement it has nothing to do with buying an RV. Financing toys is a fools game. Poor people stay poor by continuously making bad decisions like financing a depreciating asset.

Finance a $50,000 toy over 5 years at 4.5 percent interest you pay just less than $6000 in interest. That means that toy cost you an extra $100 a month to have the enjoyment of using it for 5 years versus setting aside the money to pay cash. And that doesn't take into account that the same toy may very well cost more five years into the future.
Of course people make bad decisions with credit. They actually can make bad decisions on just about everything be it money. narcotics, alcohol, love, marriage, career and on and on.But that does not make the underlying action bad for everyone.