Quote:
Originally Posted by HRBAKER
Point well taken, but the management of short term debt takes a great deal of discipline. Technically, I use a CC for almost all of my card purchases as my PP acct is tied directly to a CC and not a bank account. But it is paid off every month so essentially it is a short term interest free loan of sorts.
Sadly in my experience, I know a lot more folks who are managed by their debt as opposed to the other way around.
I don't think that most cash-only hobby folks have money buried in their backyard. Could be wrong. 
Of course when I find a seller that will let me pay over time with no charge, then that's a bonus too.  |
Some people can manage short term debt and others don't do as well with it. I would rather exploit debt and take advantage of it. I think it comes from my heritage (my grandparents) as they did fairly well with modest means. I watched them when they were still around (RIP) and learned a lot.....I also read a lot of articles about debt too so I have an idea what makes fiscal sense. No interest charges are generally the best unless I can pay $50 in interest and make several hundred off of the debt I incur. (as stated before). When something is for my collection I am sort of messed up because then it becomes a long term asset and hurts cash flow. But that is ok too as I would rather have a card than a CD (this is not what most people should do and I don't recommend it).