13 ms·
No, debt does not need to be paid off, it can be continually rolled forward, as long as someone is willing to provide you credit. When a government or a corpor
by smallnamespace 6y ago
No, debt does not need to be paid off, it can be continually rolled forward, as long as someone is willing to provide you credit.
When a government or a corporation has bonds due, it normally pays off the principal by selling new bonds.
The analogy with technical debt is honestly pretty good. As your creditworthiness declines, the cost renewing debt increases as creditors demand higher and higher interest rates.