Debt is a part of life for almost all Americans. A very small percentage of Americans have no debt whatsoever. Most have some sort of debt it may be as small as $1,000 dollars on a credit card up to $800,000 for a mortgage and beyond. No matter where you fall on the spectrum it is important to understand what debt is and how to use it intelligently.
Debt is part of our society, it allows for overall growth in the economy which leads to more jobs and the opportunity for people to increase their income and better their lives. Businesses use debt when they see an opportunity to use the capital to earn a better return than that of which they pay to borrow. By doing this many businesses can grow exponentially and use the proceeds from their revenue to repay the loans and better the overall financial position of the firm.