The challenge is to ask ourselves if we really need the purchasing power and to be strong enough not to succumb to the temptation that these credit card programs offer. Behavioral patterns and external influences largely determine the outcome of a debtor s credit experience. To have a positive experience by obtaining debt and maintaining good credit, we must understand and limit the internal and external impulses that drive us. Some people categorize debt as a necessary evil , which, to a certain extent, may be true. Debt is certainly necessary because most Americans may never be able to make an outright purchase of a new car or home if they could not acquire a line of credit.
Some individuals believe that credit worthiness is improved by being completely debt free.
Lenders are most interested in seeing how consumers handle debt. Having credit allows you to display the history of your finances to lending institutions concerned about getting a return on money that they lend. It is important that you establish some form of credit history because credit provides convenience, the additional purchasing power which may improve your quality of life. Being car poor may ultimately cause you and your family unnecessary distress. A home loan is another example of good debt because homes often appreciate in value, are usually long-term possessions and owning a home may afford you a tax break.