Maybe it's because it's January and there is this "start the year off on the right foot" thing everyone wants to get in sync with; but I've been seeing a lot of articles and advertising about consolidating your debts and paying them off and - shudder - living without debt.

Living without debt? Can this be true? Yes, there are those who would have you believe you should operate on a cash-only basis. They believe owing others money is a bad thing and that you should do everything in your power to get out of debt and stay out of debt.

They cut up their credit cards, save up and pay cash for cars and pour every extra bit of money into paying off the mortgage.

I don't get this. I think this is a poor way to manage your financial health. Why do I think this way? Here are two reasons:

1. Credit is the means by which we gain access to other people's money to use for our own purposes. In economic terms, this is the process by which resources are allocated to where they can do the most good. Eschewing credit creates inefficiencies, and that's bad for the economy and our way of life.
2. On a more micro level. Intelligently using credit is the only way you can maintain and build your credit record. Think about it. Would you lend money to a complete stranger? Of course not. You'd want to know quite a bit about the person you're trusting your money to. Aside from plenty of background information, you'd want to know this person has a history of paying back debts, wouldn't you?

Managing credit and debt is part of what makes each of us a fiscally responsible adult. Refusing to take part is more than the simple decision these article writers are making it out to be.

Let's not throw the baby out with the bath water. Credit card debt, payday loans and even advances on your tax refund are poor debt choices; but sensible use of credit in your everyday life is sound fiscal practice.