I am very anti-debt. But it can be a good and smart thing.
In general to help cash flow. Temporary debt. I don't consider this 'real' debt, as you have money to cover it, but are taking a month or two to safely pay it.
And large purchases. I subscribe to the thought that you shouldn't keep a large amount of cash lying around for long periods.
And emergency spending. Say large medical bills, loss of employment, legal costs.
I am financing the Model S. I am financing more than I will have to. I can always pay the loan down faster if I want.
I am financing my house currently . I financed as much as I possibly could.
Having some cash on hand is a HUGE advantage.
My current debt load is my current AmEx (charge card, not credit) balance that HAS to be paid every month, along with all my other monthly bills. And my mortgage. And I owe my friend a dinner.
I moved back home after graduating college. I worked for 6 months and my only expenses were car payment, Taco Bell lunches, tolls ($1 a workday), and student loans, and my credit card debt. I paid off ALL of my debt before I moved out.
Since I moved out of my parents house after paying off my student loan debt I have only taken on 'real' debt 4 times.
To buy a expensive road racing bicycle. Put on a 0% interest card, paid off at end of 0%, 9 months later. :biggrin: The day after I finally paid off my student loans.
To buy my current car (old one was totaled
, not by me). Paid off.
During a (3 month unemployed spell). Paid as many expenses with debt as possible while holding cash. :scared: I cut my spending to almost nothing (except for HBO which is a blessing and curse when unemployed) during this period. I ended up having enough cash left to pay all debt after getting a new job, but just barely.
To buy my house. Didn't have 6 digits in cash lying around in a bank account. :frown:
As an aside, I also think inflation is going to start overcoming my fixed interest rates in the next decade. But that is more hunch than anything else.