Aren’t we all? From the states and countries to the person who is responsible enough or young enough to handle some money is deep in debt. Even people who understand debt are also deep in debt fulfilling their instant gratification and piling up debt. Even the future generation is in heavy debt due to student loans. The experts have classified debt into two classes: good and bad. Good ones are student loans. Mortgages and maybe home equity loans sometimes maybe car loans- each of these collateralized by some solid product ( in the case of Student loans, the future employment of the debtor and thus improved finances). The other one being credit card debt and any other debt not secured by some underlying transaction meaning in the case of default, the creditor has to bear hundred percent of the losses.
But as I read an article recently there is no such good or bad debt. Debt is a debt neither good nor bad; it has to be paid no matter what. The credit score companies do not classify debt as good or bad so the experts should also stop doing that. Also on the state and country level, we have so much of debt that it just scares the hell out of you how it is ever going to get paid. Over in Europe, the inability of Greece to pay its state debt has created a nightmarish scenario of default and austerity on the part of the people. This is just because, it is easy to get your hands on the debt but when it comes to paying them, then we all fall flat on our faces and try to buy more time or just get more debt to pay off the previous debt. It is a vicious cycle and the addiction to debt does not seem to be stop. And we keep on piling more debt like it is never going to be paid (which it seems to me will not).