Quote:
Originally Posted by Aaron W.
I've never been a debit card person, either. However, I think the world at large would be better if it were more of a cash society instead of a plastic society because fewer people would have stupid debt.
leo doc says this way better, but borrowing on depreciating assets should be avoided whenever possible. That said, it is hard to picture a new college grad who was forced to borrow for education and is just starting out. Being the slightest bit susceptible to advertising (and who isn't), he's going to be pushed to a slightly better car, apartment, furniture, etc. Small differences in the purchase price plus interest over time makes a huge hole. If he already owes $100k for the education, is the difference between a $15k car and a $30k car large? These are hard things, especially when "it is only a few dollars a month more in your payment".
My grandparents were people of the Great Depression. They lived in a cash society, as they didn't do credit or trust banks much. That seems generations apart from today. They also plowed fields with horses.