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the interim between debts

September 11th, 2006 at 07:31 pm

I read today that my natural gas utility will raise its delivery and usage rates by 10% October 1. I am now seriously considering a solar-powered hot water heater. To you people south of the 40th parallel, I say do not scoff. My grey-skies PNW environment is actually a good area for solar energy. Germany is closer to the Arctic Circle, and it's one of the world leaders in use of solar energy.

The photovoltaic panels, it is reasoned, will not return our investment until 2046 -- our electrical use is pretty cheap, about $40/month on average. Whereas, if natural gas costs rise at 10% per year, we'll have payback for the heater within five years. The minimum HELOC charge would be $15.06 -- pretty affordable.

Actually I am jumping the gun about the subject title. I will be free and clear of that scooter debt in two weeks. I do recognize I have some abnormal queasiness about debt, what I post in concern about my peers is of course a projection of my own fiscal anxieties, but like many other people I can rationalize with the best of them.

Debt is personally acceptable if:
the interest rate paid on the debt is lower than the savings rate or the rate of increase on a necessity (utilities, for example).

it's cheaper than paying full price for an item.

it's incurred for an appreciating asset.

2 Responses to “the interim between debts”

  1. LuckyRobin Says:
    1158085754

    Growing up my next door neighbors had a solar house. It was a real money saver. The solar cells heated the hot water tank to 70 degrees and then the electricity or gas heated it the remainder of the way. Cut their bills a lot.

  2. Joe W Says:
    1158418542

    Saw on CBS news last night that natural gas prices are plummeting (production has resumed in the Gulf of Mexico after last year's hurricane season - this year's huricane season was mild/non-existent, more natural gas stock on-hand). Sounds like your local company is taking advantage and locking in the higher prices before they plummet (I think there is a couple of months lag, since their current inventory was bought at the higher price, but in the next few months they will be bilking you). Can you just switch to another company?, because natural gas prices are dropping - just like the price of a barrel of oil is dropping.

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