Well, I would argue that my current debt is neither smart nor bad debt. It's more of a cash flow thing....

I bought a pellet stove and enough wood pellets to last though the winter. So, in a sense, I already have a savings for that... my budgeted amount for fuel oil this winter will pay off the stove. Add to that some auto repairs and our outstanding car loan (which is still unsecured mind you), it's not like we're going on vacations every month.

If you can pay cash up front for a car, that's great Lemur. I got the best used car rate I'd ever heard of, even less than my mortgage. It was 6.00%, on a USED car.

All of my debts "make sense" on the surface, or at least they did 2 weeks ago. But right now, with the threat of a bank calling the notes on one of them, it doesn't seem all that smart, hence my new found resolution to only pay cash for cars.