Credit and Debt

So now, of course, in light of my post below, I've got credit and debt on the mind. I really, really, hate having debt of any sort. I know I am kind of old school in my line of thinking, and having taken some business and finance courses, I understand the value of 'leveraging debt'... I just don't have the stomach for it with regard to my personal finances.

In my mind, debt such as a mortgage is, of course, necessary (and smart, as compared to renting). That said, I do actually try to send a little extra when we can towards our principle, just cause I'm neurotic like that. Debt in the form of a car loan = sometimes necessary, but never really smart, in my mind. After all, a car is only going to depreciate in value, and it is no fun to be paying for something that is no longer nice or new (or, sometimes, even functional anymore). However, my biggest fear/aversion/disdain is held for credit card debt. So much so, that we don't even use credit cards...we just use our debit card as one, when needed. I know that by doing this, we are missing out on some of the perks of using credit, such as the cash back or airline miles and stuff that you can accumulate from cards with rewards. But, that's ok.

I know of so many people who just live off of credit cards, and while many can and do manage it just fine, and pay off their balances each month, many more don't. Part of the problem, of course, is personal responsibility and self-control. Here's some tips on how not to succumb to plastic fever. But, I also think that the credit card companies are also, in part, to blame for the rising numbers of credit problems and bankruptcies. For one thing, it is too easy to get a credit card, IMO. I can't tell you how many offers we get in the mail each day. As if that wasn't enough, this article talks about how some companies are doing more than just sending offers...they are actually opening accounts and sending cards to people who haven't even applied for the credit.

Anyway, I guess given that we need to have two vehicles, and we don't have the cash to just buy them outright, we're going to be joining the legions of people who have this kind of debt. Someone, anyone, tell me something to make me feel better about it....