Now before you all start commenting on how debt is terrible and the ultimate goal is to be debt free, hear me out.
Yes, the general rule of thumb is that debt should be avoided at all costs. If debt increases too much, it may feel like chains are tied to your ankles and wrists; preventing you from moving forward with your life.
But when used strategically, debt may actually be to your advantage!
Yes, this is possible!
Just to make sure you know where I'm coming from though, this is mainly for investments. If you want to take out a personal loan just to go on vacation or for other methods of entertainment, then don't go into debt.
This concept of using debt as a positive instead of a negative is really nothing new. An example of this is taking on debt when doing a real estate investment deal. If the investor doesn't have enough money to buy a property with the intention to "fix and flip," then the investor can take out a loan in order to purchase the property. This only works if the investor is able to sell the property at a high enough price that is able to cover the loan and have some profit left over.
Math Example
For a real estate investor that doesn't have the capital to buy a property, a great option is to take out a loan and use the earning from the investment deal to pay off the loan amount. Of course, this should only be done if the numbers check out and there is a high chance for sufficient earnings.
You may also check out Investopedia - Equity vs. Debt Investments
This same concept can be applied to other aspects of life, even crypto! Debt has a negative connotation because most people are not familiar with the leveraging power that debt has. If you look at the example above, the real estate investor was able to make $4,000 from a single real estate deal with none of his own money upfront!
Of course, I understand why people think that debt should always be avoided. But debt can be leveraged to make a lot more money than the initial debt amount! You just have to be smart about it and do your research about each form of investment.