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Message: <blockquote data-quote="Glocktogo" data-source="post: 1329383" data-attributes="member: 1132">There's a difference between debt and credit. I think more people going cash only would be good. Too many people don't recognize how to live within their means due to abuse of credit (debt). Credit was never meant to be used that way, but the lenders figured out they could make more profit off our misery if they kept us shackled in debt. Same for retail business. To say otherwise would defy logic.I only use credit to magnify the power of my dollar. My cash goes in interest bearing accounts with no monthly fees. I use credit to buy as many things as possible, using their 25 day interest free grace period to let my money bear interest. I pay off all credit accounts before interest accrues and carry a zero balance. Further, my credit card company gives rewards points. I haven't paid for an airline flight in years. That's more free money.If I return something for a refund, I try to get cash instead of a charge back on my card. That way I keep the reward points, put my money back in my interest bearing account and accrue more interest. Same for my new car loan. I could pay off the note right now, but why should I? The note is for 1.9% interest. My money can make more money than the financial company is charging me on the loan. That's more free money for me.I don't use the power of credit to buy anything I don't need though. That's the trap of free money, buying crap you don't need. I'm also a stickler about value. Even if I need something, I will not buy it if I feel it's overpriced. I'll look for an alternative source (ebay, etc.), an alternative product, or just see if I can do without. What's really cool is how I feel when I purchase something I need. Instead of the angst of waiting for the bill I can't pay off and accruing more interest charges and penalties, I get to enjoy using the lender's free money for a while. It actually improves how I feel when I buy something, even gas for the car.Where I've had to take on true debt (home loan), I've tried to mitigate the damage. I buy points on the loan up front to reduce the amount paid in interest. I set up bi-monthly payments to further cut back on interest charges. Finally, I make principal only payments at the front end of the note whenever I can to cut the term on the note. At the current rate, my 30 yr note will be paid off in 18 years, yet I'm not saddled with a 15 year note and higher monthly payments than I can comfortably afford. I even use credit card and debit account auto pay wherever possible to save on stamps. If you understand money and how it works, you can make it work for you instead of you working for it.</blockquote>

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