I think many are underestimating how useful credit is. Credit is a tool - a financial tool. As long as you use it for what it's intended for, its a good thing, not a bad thing.

Credit becomes bad when we begin to use it to buy 'toys' as opposed to things they increase our potential for generating wealth.

Student loans are a good example. Relatively few high school graduates could afford to pay for college, but with a loan, they can get a degree that increases their skill and marketability many times over, causing a net increase in their overall wealth.

Same with new businesses. Credit can be used to put a business in action sooner, and generate significantly more wealth that would have been possible by saving and buying.

Finally, if it was truly a TSHTF situation, would you really refrain from using credit because you weren't sure of your ability to repay later? Is that a principle you'd die for or let a loved one suffer for?

Some people don't like credit of any sort. That's fine. Some people don't like guns. Both can be dangerous when used unwisely, but both can be very beneficial when used appropriately.