10 Characteristics of Debt-Free People
3. They operate within a budget
Just because they have disposable income doesn't mean they spend haphazardly. If they can afford it, they'll spend. If not, they'll wait or forgo spending.
Credit, when understood and used properly, is a good thing. Debt-free people aren't afraid of credit. Instead they use it properly to build their personal credit and pay their cards off every month to avoid interest. Demers uses his grandparents' attitude towards credit. He says, "Never, ever use them as a substitute for cash. They must be paid off every month. My card's limit has been set deliberately very low for that reason."