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It makes me a little ill reading some of the comments from conservatives on the necessity of personal debt (”but I get 2% cash back!”).

Hmmm, maybe you are referring to another thread?

I did a quick check, and didn't see anyone advocating personal debt. But maybe I missed one.

Personal credit is a lot different from debt. Using credit responsibly can make life much simpler, and profitable.

For instance, we use credit card rewards to effectively discount every purchase by 1%. We have no debt, because we pay off the credit cards -- in full -- every month.

The interest rate doesn't matter, because we don't pay any. We pay no annual fees, except on one that gives me a free benefit every year that is worth up to double the annual fee.

Is there a temptation to over-spend? Sure. But, a little self-discipline goes a long way. Applications like Quicken to manage your personal finances really help, too... Once it is set up, you can look out a couple of months and instantly know whether you are charging more than you can pay when the bill is due.

I understand the difference and my comment stands. Once 'credit' is acted upon it triggers debt regardless of the interest rate or the fact that the balance is paid off every month. If there is a balance -for any length of time- by definition there is debt. The potential for financial issues is increased simply by virtue that the exposure exists.
I believe you when you say that you are responsible, have discipline, and pay the debt every month. Fine. I have chosen to never again incur debt in any form. That doesn't make me better, just different.
Interesting aside: now that I have so little debt and a simplified portfolio I stopped using Quicken. It was just gross overkill for the financial transaction activity we have.

Haha good one. The fact is that credit is nothing more than an “I love debt” indicator. Your statement is really just a justification to youself to have rotating debt. Period....

You may pay it off every month, but facts remain. Debt is debt. What is even funnier is your pride about the 1% rebate. The reality is that people who use cash apend 30% less (on averag) than CC users, so the kickbacks are a joke. Add in the purchasing power of cash and the differenc is amazing.

I have no issue with people that want to use CC’s, however the cards are not some great “tool” that will make a person wealthy. I’ve yet to hear one wealthy person say that cc rebates were the key to building wealth. I have heard many say that a critical element in building wealth is using cash! I’ll do what wealthy people recommend....

Haha good one. The fact is that credit is nothing more than an “I love debt” indicator. Your statement is really just a justification to youself to have rotating debt. Period....

You may pay it off every month, but facts remain. Debt is debt. What is even funnier is your pride about the 1% rebate. The reality is that people who use cash apend 30% less (on averag) than CC users, so the kickbacks are a joke. Add in the purchasing power of cash and the differenc is amazing.

I have no issue with people that want to use CC’s, however the cards are not some great “tool” that will make a person wealthy. I’ve yet to hear one wealthy person say that cc rebates were the key to building wealth. I have heard many say that a critical element in building wealth is using cash! I’ll do what wealthy people recommend....