<prompt> Human: Ive noticed this attitude from friends, and especially family, when I discussed getting a new credit card recently. I ran into a few unexpected, pretty large bills. While I could have paid them outright from savings, I opted to grab a 2nd Credit Card and dump it all on there. Now when I mentioned this plan to family and a few friends, most reacted the same way - mainly that holding credit card debt is a bad thing, I should be just clearing the costs outright and not bothering with the credit card. The card I went for offered 30 months at 0 on purchases, and a couple of the bills I got allowed me to split the cost over a couple of months, at no extra cost. So instead of taking a big chunk out of my savings, I can comfortably pay these costs off over 2 and a half years, at no extra cost, while also improving my credit card rating. If I was doing this with a stupid interest rate, and I couldnt handle the monthly payments, I could possibly see their point. What am I missing? Why do people fear credit cards so badly...  <response>: I do agree that many people have an unnecessary fear of credit cards out of misunderstanding or bad experiences of their own or of friends. Its better to have an understanding of the advantages and disadvantages and learn to use it as the effective tool that it can be while avoiding pitfalls that many fall into.However, there are some reasons to be concerned about carrying a balance on a card, even with a 0 interest period: if you ever miss a minimum payment during that period, you will suddenly owe interest on the entire original balance, back to the beginning. Also, its easy to say now, 2.5 years before you plan on paying it off, that you have the money to pay the entire balance. But what if you lose your job, use up your savings to survive between finding new employment, and suddenly cant afford to cover the payments anymore?Some people manage to do what youre describing very effectively. But it is a higher risk activity than simply paying for it in full up front. 