When to Carry Debt--Not Necessarily Approved by Dave Ramsey

Yahoo's Jeff Brown contrasts concerns with the Federal Budget with personal budgeting issues in this article. Brown points out that one lesson to learn from the Feds is to NOT use ahort-term debt to cover long-term responsibilities. Brown also argues that while an emergency situation can justify serious debt, "emergency" must be carefully defined so that vacations aren't defined as emergencies. Brown argues that only homes and education justify debt and that credit cards should only be used for convenience and timing, not as a source of funding.

I am generally satisfied with Brown's commentary, though he may be slightly more willing than I to borrow for a basic automobile. One additional point--do not borrow for education unless you have a specific plan--including both course of study/major and plan for employment after your education.