Is all debt bad?

[freeturbo1633]

Debt is very useful for responsible people who know what they are doing and it is the basis of capitalism allowing business to start and infrastructure we all use to be built. For people who borrow without the means to pay back, it is a road to ruin in a downward spiral hard to stop but not impossible.  Don't borrow if you don't have a way to pay it back,  If you do borrow, pay it off prudently to maximize the benefit and minimize the pain.

[freeturbo1633]

If you live in this society and not off the grid, you need a good credit score.  A credit account is now essential for many on line and off line transaction even taking  a bus or parking at a parking meter  or taking a cab or ride share.  A card with a low limit that you keep paid off as you go can be very useful.  Just use it like cash and pay as you go. Use a different card for larger transactions and leave it at home in a safe place but treat is the same way.  Never late fees and no interest is best is best way to establish credit.

[freeturbo1633]

I do much the same and have paid no interest in decades and no late fees since they changed the laws that stopped some unfair practices by banks and credit card companies that made sure you were late by sending out the statements later and later making it impossible to get a payment back in time.  Banks hired people to trap the unwary and naive into making big mistakes.  Unethical practices are still common.

[freeturbo1633]

Wealthy people who don't need more money still borrow huge sums to make more money. It's easier to borrow if you are low risk and they know you have the assets to pay back the loan.  If you have no credit record to point and no assets to use as collateral or evidence of creditworthiness (low risk to creditor), then you will have to pay higher interest at usurious rates. Usury is forbidden in many Muslim countries and was forbidden in the old testament.  It is one of the first sins named in the Bible.  I don't understand how Christians tolerate this basic principle of their religion.  Many states put limits on interest rates but some don't and so that's why the credit card companies have their headquarters in those states.  Sioux Falls is in one of those states and that's where you send you payments for citicards and why it's there in that state.  Check out the limits in your state and lobby for lower limits or APR for credit and loans of all kinds.