In many people’s mind debt is a means to an end. It is the way that you can get something you want now, instead of waiting until later. There is debt that is truly unavoidable (such as emergency medical expenses) and debt that is more acceptable than other debt (such as a mortgage). But generally debt is something that can hold you back. It can limit the choices that you make in the future. It can keep you from taking risks and opportunities, because you have obligations that you need to meet.
I have personally seen families struggle under piles of debt. It limits what they can provide for their children. It can also cause a bleak future when it comes time to retire. Many people are working until they are much older, because they were unable to save for retirement. Many of these people had to repay debt that they had accumulated over time.
It is also interesting to consider the interest rates that accompany debt. One common excuse for purchasing something on a credit card is because it is on sale and it will save me so much money. If you do not pay off your card in full every month, then you may end up paying double what you saved in interest charges. Everything you buy on credit adds money on the purchase price because you pay the additional interest as well.
For example if you were to borrow $10,000 to purchase a car at a five percent interest rate, and you planned on paying the loan off in five years you would actually pay 1322.74 in just interest charges. The amount you would pay to repay the loan would be $11,322.74. However is you saved that amount of money in account with the same interest rate, you would have that extra money to spend on the car or on other things for yourself. If you are purchasing items on a credit card, the picture is much worse because the interest rate is usually three to four times higher.
Saving until you can pay cash for most purchases will save you a significant amount of money. It can lead to having a more comfortable worry free lifestyle in the long run. It can help your retirement years to be more relaxed with more options on what you can do and where you can travel.