Quote from: Pejoh Asu on October 10, 2023, 10:01:11 AM

Debt is indeed something that seems difficult, sometimes we feel why there are countries or companies that are still managing debts even though they can be paid off immediately, especially large countries like the ones above, of course it is not difficult to immediately pay off these debts and I think the influencing factor is because the country also needs debt to make financial ratios look normal.

This is not the reason, to be honest. The financial ratio does not matter. Think about your own business so you can understand better. Let's say you have some products in your store worth $5000 now and you can generate $20 profit per day by selling these products. After your sale, you buy again from this sale. Now, you took another $ 5,000 loan that will charge you $500 a year, and you can pay them in installments. If you have $ 10,000 worth of products in your store, your daily profit will be $40 a day. Now let's calculate: If you generate another $20 profit per day, that will be around $7300 a year and your debt was $5000+ the service charge. I hope you get the match. The rate of interest varies from institution to institution. The profit ratio varies as well.