Thanks for sharing your thoughts Joey. I think we'll have to disagree. The house or car are assets right now, whether or not they currently bring in cashflow or income. If you borrowed money to buy them, the loan (mortgage or auto) is a liability for you and an asset for the bank. The car or house are not assets for the bank, just collateral. If you stop paying your loan payments, the bank will ultimately take the collateral to replace the lost asset - the loan - which you rendered worthless by not paying anymore.