Nancy De Andrade, PhD
I was born and raised in Venezuela where most things are bought cash. The difference is that good universities are free. In the US, there are no public, free universities so we have no choice but to incur in debt. Debt helped me get through school and finish my PhD.
Are there good debts and bad debts? Perhaps. To me a good debt has low or no interest rate, no extra fees and options in case you can't pay. A bad debt increases the amount you owe.
Paying your debts shows that you are a responsible person who can be entrusted with money.
My suggestion is (and all of Dave's were right on!),work with the credit card and finance companies. A lot are willing to work with you in reducing your payments or settling your account.
I hope this economy moves towards a less dependent-on-loans consumer attitude and a more trade-like interdependence.
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