What did you get ?

[alanmcorcoran]

Originally Posted by burkbuilds

Music Man, you are very wise. We would all be better off in the long run if we followed your philosophy.

It's a wise approach as long as we are talking about things we don't really need or that will not otherwise reduce costs or increase income. Although it does introduce risk, credit and borrowing are essential elements to modern economies. Even in the poorest Western households, it probably makes more economic sense to borrow the money to buy a washing machine, than to use the time, money and gasoline to take one's clothes to a laundramat.

Even in the case of a motorcycle - if it allows you to get to a well-paying or good-benefits job you would otherwise not be able to get to, it might be very smart to borrow the money needed to buy it. Also, in some cases, borrowing to get a college education can result in a much better standard of living over the long term.

Using a credit card to buy toys, dine-out or go on vacations, on the other hand, is just digging a hole.