Debt is one of the biggest barriers to financial stability. When you save, you give up something in the present (that pair of sunglasses) so that you can benefit in the future. When you pay with credit (i.e. by going into debt), you pay for the past.
Look at this example of Onke and Anathi, who both need to buy a new stove. Onke uses savings and Anathi pays with credit. After two years, they both have a stove, but their finances look vastly different.
Further reading
How can I build a healthy credit score
How to deal with debt
How to check your credit score
Why saving beats debt every time
Sources
Money Mondays: Borrowing vs saving & Investing
Nischa: Saving vs paying off debt
These calculations were generated by AI for illustrative purposes only, based on an assumed interest rate of 5% for Onke.
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