Why Should I Avoid Debt?

Why should I avoid debt? Of the dozens of personal finance books that I have read, most describe how to get out of debt, but few give good reasons why a person should avoid debt in the first place. Earlier this year, my wife and I became debt free (except for our house). In January 2009, we decided that not only were we going to pay off our last debt (our car), but that we were going to run our household without taking on any new debt, and stay debt-free.
In July 2009, we paid off our last debt, and immediately began putting money into savings. In November we purchased a piece of furniture (a king sized bed) for $1700, in cash. What satisfaction we received from saving and purchasing the furniture without any interest payments.
By paying cash, we avoided the following:

• Spending future income: we could have decided to sign up for future monthly payments that would have tied up a percentage of our future income
• Paying for the privilege of borrowing money: the creditor could have charged us a ridiculous interest rate (most likely 19% or more), meaning that the bed, if paid off in the agreed amount of time, would end up costing $2023 ($1700 + $323 in interest payments)
• Risk: if for some reason we couldn't make the payment one month, the financing company could repossess the item and/or begin contacting us to collect on the debt
• Negative items on our credit report: because we didn't establish a line of credit with the furniture store, there is zero chance that a negative item will show up on our credit report because of this transaction
  

Because we paid for the item in full, we have avoided the issues outlined above. Planning ahead, shopping around, looking for the best deal, and saving up beforehand will allow you to pay in cash and avoid future debts. What are your experiences with avoiding debt? Please respond in the comments below.