[mclovinit]

For those I know, including myself and my partner, the habit to strive for is spending less, and I agree that credit can be a useful tool if used wisely, but never really know when life can throw a curve ball. For now, we use credit cards, but manage to eliminate our debt by paying everything soon after incurring debt. Call it using debt for leverage I suppose. For any big purchase (which is rare), we aim to use credit when no interest penalties are present and pay off before any are incurred. A small house, inexpensive vehicles, and thrifty habits even with the use of credit cards allowed us to save quite a bit in contrast to those heavily in debt with terrible credit, but it is still a gamble. I don't blame others for having debt. There are many reasons for this. Without any major life events this system works for us...until perhaps it doesn't.

[fit2rule]

The #1 rule is, stay cash-positive: don't spend more than you've got in the bank to cover the bills, but be willing to defer the payment and continue income in the interim, because .. after all .. nothing feels better than having all bills paid and still having a net positive every month, to save away ..