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zen habits: Pay Cash Instead of Borrowing or Using Credit

Monday, January 29, 2007

Pay Cash Instead of Borrowing or Using Credit

Trent over at the Simple Dollar has a great post about paying cash, and I agree completely.

His example of paying cash for a car is something I haven't done yet, but plan on doing. I'm going to sell my Pathfinder, buy a cheaper used van (because I need more space for all my kids), and pay off that loan before the end of this year. Once that's done, I'll pour the car payment money into savings so that I can save for my next car. It will feel amazing to do that!

Using credit cards, especially if you are not paying off your balance in full, is also not a good idea. I've canceled my cards, and am trying to pay off my remaining balance by this summer. The interest on these cards can kill you, and keep you in debt forever.

I'm generally against debt, as it has ruined my finances, and I am still on the road to getting debt free. It's one of my top goals for the next year and a half.

J.D. over at Get Rich Slowly also has some great posts about the issue of avoiding debt.

1 comment:

Anonymous said...

i agree 100%. never use credit cards.