Originally Posted by joshnky
The better question is why not pay cash if you have it? I'm sure your parents will be fine and can handle this but this is the attitude that has created the latest credit "crisis". People have built up massive credit card debt based on the attitude of "why pay now?" You're going to have to pay for it sometime. Why not pay now and then eliminate the risk of something happening and the interest kicking in.
The cash is in savings accounts earning interest. They can get at it at any time. They will use automatic payments to prevent the interest from kicking in.
They put a trailer on discover (to get the cash back), paid it off entirely before the interest kicked in, and paid THEMSELVES back with interest.
Look, I don't recommend it for many people. But a lot of people of their generation can do something like that. Few of mine and younger.