Debt is debatable. It all depends on the interest rate. If there's inflation, you WANT to be in debt. A loan at 5% interest with a 10% inflation rate is favorable. Likewise, if you can take on debt and invest it in an appreciable asset or income stream (business, income generating real estate) you get an ROI greater than the interest rate, you're making money. I work with wealthy people, they're all in debt because they invest it. The key is what you take on the debt for. An Iphone and groceries on a credit card with 20% interest? Bad debt. Financing an income propery? Good debt.
The question is, when SHTF, what happens to that debt?
Debt is debatable. It all depends on the interest rate. If there's inflation, you WANT to be in debt. A loan at 5% interest with a 10% inflation rate is favorable. Likewise, if you can take on debt and invest it in an appreciable asset or income stream (business, income generating real estate) you get an ROI greater than the interest rate, you're making money. I work with wealthy people, they're all in debt because they invest it. The key is what you take on the debt for. An Iphone and groceries on a credit card with 20% interest? Bad debt. Financing an income propery? Good debt.
The question is, when SHTF, what happens to that debt?