Debt is deadly, and it’s made even worse with rising interest rates that can prevent you from eliminating the load. What happens with rising interest rates is that more of the payments go toward the interest and less to the principal. In fact, it’s what I call a death spiral of debt that worsens as rates move higher.
When individuals face excessive debt, often the solution is to reduce spending and adhere to a strict repayment program. But when governments build up massive debt loads, there is no definitive solution, and it becomes problematic.