Wealthy people love debt. Unlike the poor people who just want to get out of debt as fast as possible, the wealthy are looking for more ways to increase their debt. In school I was taught that there are two types of debt the good debt and the
bad debts.
Wealthy people are in the good type debt. Good debt is money borrowed to invest in a business like real estate , restaurants, or property whose value will bring in more money than the debt. However bad debt is there borrowed to buy liabilities. This is where the wealthy are smart. Their debts are the good kind of debt that increases their wealth despite being in debts.
As my economics professor would say, Using someone else's money (debt) to increase your own wealth is a skill the wealthy have mastered.
Debt has never been a bad thing it's just used wrongly by most common folks, have you ever wondered why bank gladly borrow money to business men even if they are owing?, that's because they make money of the little percent they take as interest.
If you take loan to invest in a business then you have made a good use of a loan and if you use it for personal needs like buying food or living luxury then you just created a mess for yourself to solve later.
Normally,debts is supposed to be used for common activities and to solve arising issues or unplanned transactions.Naturally,debt is a financial tool that has been used since ages amongst business individuals and financial experts.
Ordinarily,debt is supposed to work and solve certain issues but it seems to have been overused.Debt plays a significant role in the financial life and services of people and it either solves your problem,deters it or worsens the process depending on how you've applied the debt terms involved.
People get into debts to take care of unexpected life events,when there's a downturn in the current financial state and access opportunities that may seem to be out of reach.The debt method is so complicated and I wouldn't even consider it.