What should be your goals? Our parents were clear. Save before you buy. Almost no credit.
Made sense, but delayed gratification. Loans were not available, salaries were low.
But when I went for a few years to the U.S., I saw consumerism driving the economy. Most people bought on credit/loans. Homes, cars which had to be paid off in 15-20 years (homes) or 5 (cars). Credit checks were done through independent agencies that were reliable.
Our generation lost that clarity. Incomes went up (back in India, after late 90s). So we did take loans as they opened up, for cars, computers (yes!) or washing machines (EMI), and sometimes homes.
Now, spend as you earn seems to be a norm, among young people, with building wealth the last thing on their minds.
My view is it depends on the life cycle, and how long you expect to live. If you can, finish your loan payments as early as possible in your working life- say, 30-50 years of age, and build capital for a pension or equivalent in the next ten or twelve. After 60, slow down and work less, spend on experiences that don't cost a bomb, steadily. Have an emergency fund for unforeseen large spends- usually medical.
