Balancing Lifestyle and Debt: Realities of Middle-Class Living

[Maria]

While it's true that acquiring liabilities with a loan is generally discouraged, the reality for many middle-class individuals, especially the lower middle class, is different. Life extends beyond necessities, encompassing enjoyment and fun. Buying a car with a loan, although a liability, is sometimes a practical choice for those who cannot afford a one-time payment. As long as debt repayment remains below 10 percent of monthly income and 20 percent of yearly income, making desired purchases, even through loans, can be a reasonable decision.