Living without Debt & Credit – Is it really possible?

November 29, 2010

Author: William M. Davis

Today to keep up with the “Jonses” there is added pressure to buy things we don’t necessarily need. Most consumers buy things using credit. Some even shop for groceries on credit, which is scary. Credit has become a part of life that people must use in order to survive in a society where fulfilling every little desires must be met even if it leads to financial ruin. With that being said, is it really possible to live without debt and credit?

Living without debt and credit is possible, but first you must know the difference between needs and wants. They are entirely two different things which must be looked at separately. A basic want is just something you want and desire but can live without, whereas a need is something that you cannot live without, for example food, clothing and shelter, which are the basic necessities of life. But if you have to buy these items on credit, there is definitely something wrong with the way you manage your money and must to be addressed. However, buying an expensive item such as a car or house is perfectly normal to buy on credit because most people do not have that kind of money to make such a large purchase, but if you cannot afford the payments, then using credit and getting into debt does not make sense.

People Who Are Living Without Credit and Debt

Take a look at who may fall into the “Living without debt or credit” category:

• People with bad credit
• The very wealthy
• The under age population
• The immigrant population
• The illegal immigrant population
• Widows and divorcees who are older
• Retirees who already have a home and automobile that are paid off in full
• People who like to live a cash only life and stay away from credit

Must Have Credit to Get Credit

In order to get credit you must have credit and use it, but use it wisely. Not having a solid credit history can ruin your chances of getting credit or you may only qualify for a low line of credit. And having bad credit is no good either. Today credit histories are used to determine whether or not someone can pay their debts, afford to rent an apartment, and even to get a job. Overall, living without credit is possible but can limit the things you can and cannot do.