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If I do not have the cash in hand, I do not buy something. Period.

So you'll never hold a mortgage or a student loan?

There are things for which a credit card purchase makes perfect sense even if you can't pay it off immediately, as long as you have a clear plan for paying it off in the near future. I gave as an example buying a suit for a job interview. Other examples might be medical bills while waiting for an insurance settlement, or a car so you can get to your job, or even a computer as a startup cost for a business.

The difference between borrowing for a mortgage and for a credit card purchase is only of scale, not of essence. Whether either purchase is wise depends on your overall financial context, not on short-term cash flow.

- Erik
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