In my life I have always preferred only to get a loan as completely a last resort. By seeing loans as onerous (which they usually are) I find is the best way to move through life. So, as a young person I would only borrow money for loans to buy cars generally speaking. Everything else if I could afford it I usually just paid cash. This way I wasn't under the gun for interest on various things all my life. This has proved very wise in multiple ways.
As I moved through life I finally got to the point where I stopped buying cars with loans and instead started to pay cash for whatever car or truck I bought. This avoids an incredible amount of interest. Then I started not paying any bank charges on bank accounts by either keeping my bank balances high enough or by automatically transferring $75 or more per month from my checking to my savings which also makes a checking account free at some banks.
And finally I only go and get a loan at this age to pay off things like estate taxes or business loans for expanding businesses. Whenever possible it is better to just use your ongoing cash flows from your businesses and incomes to do everything whenever possible.
But, if you have to get a loan always try to get a fixed interest loan for whatever you want to buy. Don't get a variable rate loan at all unless there is no other feasible way to finance your business, your car, or your home. And even then think about what happens if higher rates get triggered. Just think about what happened to people you know the last 5 years who lost everything while thinking about this. In this way whenever possible you will you use cash rather than borrowing anything ever.
IF you are wealthy and want to stay wealthy this is part of how it is done. If you are not wealthy and want to become wealthy it isn't usually done by borrowing money unless it is for starting a business.
Because a house is not considered an asset until it is paid for and a car isn't really considered an asset unless it is either paid for, under 5 years old, or it is a desirable antique in good working condition and salable.
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