I would only take out a loan to buy a house, car or other extremely expensive NECESSITY. Even those I would buy with cash if I could, but who has that kind of scratch? Some would argue that a car is not a necessity, but I certainly can't see how a new bass is a "necessity", especially if you already have something decent to play. I've known several people who've fallen into the credit card trap. Some have even done so, gotten counseling, consolidated their debt and paid it off only to make the same impulsive mistakes all over again and fall into financial trouble once (and sometimes multiple times) again. When you buy something on time, especially at usurious credit card interest rates, you will at best wind up paying far more than the advertised price. Somebody will end up making bank, and it won't be you. If you doubt this, get hold of a mortgage amortization table and do the math, using the amount, term and interest rate of the loan you're considering. It can be a sobering exercise. IMHO, better to save your money and pay cash (which can often give you some real bargaining leverage). Credit card balances should always be paid off before they accrue a dime of interest. Otherwise you may wind up bankrolling somebody else's quality of life at the expense of your own.