U-Ming, good discussion. For me people should learn that “good debt” is debt others pay for you and helps you get rich while “bad debt” is consumer debt that helps people stay poor, especially when at high interest rates like credit cards. Then the idea is to minimize bad debt as much as reasonable, and to “maximize” good debt as much as prudent. Certainly it’s ok to use a mortgage to pay for a home, but these are expenses that should be kept low as your personal home is not an asset in the sense that it doesn’t generate wealth at a decent rate of return. Better to live frugally with a small mortgage payment and invest more money in assets that generate wealth at much higher rates of return. Many middle-class Americans buy the most expensive house they can afford because they believe they are investing. This helps to keep them poor.