[chii]

i dont think lifestyle increases (i assume you mean improvements) should not be financed by debt. It should be financed by profit. I can understand financing education by debt - its an investment, which hopefully, should make a return afterwards in the form of higher productivity/output/value when doing a job.

Life style improvements - such as getting a better car, or going on holidays, or bigger tv etc, do are not improvements to your cashflow, and should never be financed by debt.

[nichtich]

No, because people are not money earning machines. People earn money to satisfy their needs, and the ability of earning money doesn't always sync with their needs timely. A loan will help that. So you can take your children to Disney world when they are 8, instead of saving till they are 18 to make the first trip to Orlando.

[chii]

or, you don't take your kids to disney world, but teach them, bright and early when they are young, that the family is poor. That they need to understand what circumstance they are in, and don't throw tantrums or compare themselves to their neighbours who _do_ have the money to go. Tell them they need to study hard, and make sure they get a good education from school, so that their future is better than the parent's.

Then, when they are 18, they'd have a much more mature mentality, and won't go out to get drunk and cause problems for themselves. They'd be able to get a job, or try start their own business, etc. When time comes for them to have their own kids, they'd have enough to take their kids to disneyland.