New Delhi, Sept. 10 -- Often attributed to Will Rogers, this is probably the most famous quote on debt: "Too many people spend money they haven't earned, to buy things they don't want, to impress people they don't like."

A loan can help you study, buy a home or grow a business. However, a useful purpose does not automatically make borrowing safe. Interest costs, repayment capacity and changing circumstances decide whether debt helps or hurts.

Good debt supports lasting value or improves your earning potential. Education loans may fund skills that improve job prospects. Home loans help buy property while business loans can support expansion.

However, higher salaries, rising property prices and business profits are never guaranteed. Borr...