On many frugal and personal finance blogs, all debt is regarded as a four-letter word. I agree that debt reduces freedom and that “we” as a society accumulate debt much too easily. We’ll probably never take out another car loan because we lived with that burden for too long, and we don’t use debt for Christmas or birthday presents or to go out to eat.
That said, I’m not convinced that all debt is bad. I can think of situations where I would take out debt — an adoption, a trip to see a sick or dying family member (or even to visit a new baby or attend a wedding), a business opportunity, etc.
I’m sure we can all agree that the best situation to be in is to not have debt and have ample savings so that you can afford these things without debt.
But today I want to know…
Do you think all debt is bad?
Are there situations where you would be willing to take out debt outside of actual necessities?
Where do you draw the line as far as debt that’s okay and debt that’s bad?
Has your view of debt changed over the years?
Looking forward to hearing your thoughts!