Is debt good or bad? Economists would answer: it depends. Two things matter: the cost of the debt, which is reflected in the interest rate, and the returns on whatever you use the borrowed funds for. If your income is rising faster than the interest rate of the debt, then it makes sense to increase debt as you’d be able to repay it without trouble. If not, well, then debt will be a poisoned chalice.
Debt: evil or enabling?
Debt: evil or enabling?
Debt: evil or enabling?
Is debt good or bad? Economists would answer: it depends. Two things matter: the cost of the debt, which is reflected in the interest rate, and the returns on whatever you use the borrowed funds for. If your income is rising faster than the interest rate of the debt, then it makes sense to increase debt as you’d be able to repay it without trouble. If not, well, then debt will be a poisoned chalice.