Debt is a double edged sword. On the one hand it offers you the opportunity to acquire something you probably couldn't pay with cash on hand, like a home through a mortgage, but on the other hand, way too many people have gone deeply in debt through the misuse of their credit cards. A credit utilization ratio answers this question: how much of your credit card credit line do you carry a balance on? For example, if you have a $10,000 credit line and you carry a $3,000 balance, then you have a 30% credit utilization ratio. The higher the ratio, the more of your credit line you utilize, which lowers your credit score. I advise clients on their debt management by looking at their credit utilization ratio which gives me a general idea of their capacity to avoid being constained by the burden of debt. Once you can control your debt, and not let it control you, then you've achieved a high degree of financial freedom. True financial freedom is no debt. Can you imagine what that feels like? Yep, you can do it, just pursue a prudent lifestyle. Your lifestyle dictates your spending. Beware of using your credit cards like a free handout, but rather ask yourself this question prior to swiping (or tapping) the card, "Can I pay for this right now?" If not, then make the prudent decision and wait, and that leads you to a prudent lifestyle. I love advising folks who wait patiently, think deeply about their values and watch their portfolios multiply through the magic of compounding interest. Warren Buffett calls it "the eighth wonder of the world".