I see that you do not allow facts to get in the way of your feelings. That's an admirable quality. I wonder, though, if your 'time value of money' function is flat and at zero, whether you would be consistent in that by loaning out your own funds at a zero interest rate. If you don't care whether your money arrives now, or five years from now, then you should be willing to make zero-interest loans. Are you?
I have acquaintances in the neighborhood who were not good stewards of their money. They borrowed against the future to buy things for the now. Well, R. has been unemployed for two years and their funds are gone, their investments are gone, and their house will probably be gone next month due to foreclosure. You'd better believe they regret some of the purchases they made on credit, and the interest on those debts that they could have put into the bank or some other investment.
Pre 9-11, friends of our drew thousands against the equity in their home to invest in the stock market, hoping for a greater return on their investment. Unfortunately, they lost the majority of it. Presuming a continued market recovery, they will eventually make it back and hopefully earn enough interest over the life of their investment to realize a sizable difference. Hopefully.
As for zero interest rate, yes, I would be willing. Twice, over the last year, I offered two struggling friends money to pay their mortgage payment, at zero interest. We have the cash on hand, they did not. I certainly did not want to see them lose the investment they had made into their homes, several years worth of mortgage payments gone. They didn't take us up on the offer and managed to squeak by, but were grateful for it. The offer still stands.
As I stated in my original post, but you failed to address in your replies, there are definitely times when incurring debt is a necessity, even a benefit. For some inexplicable reason, you seem to suggest that being a good steward of my money is unreasonable, that borrowing against the future I may never live to see and saddling my family with the debt is the better alternative.
Nope. I'll take the road less traveled, the one that allowed me to buy my house without asking my "family" to help with the downpayment, the 20 year note instead of the 30 year note, the one that gives me a 780 credit rating, the one that leaves thousands in my retirement account, the one that gives us plenty of cushioning if my husband and I are suddenly unemployed, ill, incapacitated, or deceased. Given my health considerations over the last two years, there is every reason to believe I will not develop an appreciation for the "time value of money" because I will not be alive to see it.
But if it makes you feel better to suggest that this is my "feelings" talking, go right ahead.