The only time I use debt is buying securities on margin. Otherwise, none. I work hard and want as much of the money I earn to go towards wealth as possible. Food, gas, insurance, many factors already fight against that goal. Significant debt is the biggest waste of money in history because people don't understand it. You want to be on the other side of the trade, you want to be loaning money to other people, be it corporations, your local muni, whatever the case.

 

I dont believe in debt. Ive paid for everything i own without charging it.

 

Do you live in a box?

Debt can make financial sense, but most rarely make it work for them.

 

I've never lived with a debt load (my mortgage doesn't count, as you say) so I have no idea how it compares to the alternative.

 

I will always take advantage of 0% deals on purchases. Leaves my cash in places where it makes me money. Other than my mortgage I only have a lease payment on a Honda Pilot - AMEX is the only CC I use and it is payed monthly.

 

He probably doesn't trust banks either...

 

I consider offers like these more or less buying on margin towards building wealth, not eroding it. I now a guy who actually bought a new motorcycle with the funds he used from investing his 50k CC offers. Back when you could get 5-6% FDIC insured/fully liquid on high yield savings account he was making decent money doing it.

For me it's not worth the time, not that I'm rich by any stretch IMO but the only thing I avoid more than bad debt is needless stress.

 

I know a guy who considers $50k to be pocket change. He just bought a new H2 and priced it out at $55k. The dealer offered him 0% financing, but when he asked how much it would be if he just wrote a check, they agreed on $50k. So he wrote a check.

 

to those of you who have "never had debt", how did you establish your credit rating?

My current debts are my car and student loans. I can pay off either one with my savings but I'd rather not because I'm pretty close to paying straight principle on all accounts.

I don't think I'm a glutton for punishment nor would I call myself a cheap, I just like living below my means. Though it's very contradictory when I am a electronic gadget fiend

I dump most of my monthly income into my high yield savings and investments. I have also decided to hold off on buying a house right now and rent a place for a year to see where the economy goes while I save for a large downpayment.

Sometimes, it's just hard to contain myself when I go to Best Buy and I gaze over at the Samsung 46" 1080p LCD w/ 120Hz

 

Yeah, if you can get a cash discount it's good, but the flipside is sometimes also true; car dealers want you to buy financing from them, so you might get a WORSE price if you pay cash.