Very few people could afford to go to college, to buy a house, to buy a decent car, etc. if they had to wait until they had all the money to purchase it outright.
Similarly, businesses would not expand and create new jobs if they depended entirely on receipts.
Obtaining credit is an act of faith and hope in the future: you believe that you will have the financial wherewithal to afford your current purchases even if it means paying for them over time with interest.
Some of the things you purchase will be entirely practical such as purchasing a decent truck for your business. Other things will be a mixed bag such as a vacation to a location which might provide some future business opportunities. And some will be purely for the sheer enjoyment of life such as a jet ski.
We need to be prudent, but we also need to realize that this is the one material life we will have and we weren't put here merely to struggle through and barely get by until we drop dead of worry and regret.
We need to be prudent, but we also need to realize that this is the one material life we will have and we weren’t put here merely to struggle through and barely get by until we drop dead of worry and regret.
Millions of people do this - I do - what else were they put here for?
Credit for productive enterprises is usually a good thing and should not be discouraged.
Unfortunately there has been entirely too much credit extended for frivolous purposes, on the speculation that borrowers would continue to have incomes capable of sustaining the debt and/or their mortgaged homes would continue to increase in value.
Minimizing the latter and expanding the former would increase growth and wealth.