All money is debt, apart from cash. You don't have $10 in the bank. Instead, they owe you $10. When you borrow money for your house, this is new money introduc

All money is debt, apart from cash. You don't have $10 in the bank. Instead, they owe you $10. When you borrow money for your house, this is new money introduced into "circulation". Where did it come from? Well when you borrow $100k you get $100k in your checking account and $100k debt. They add up to zero, so no problem! You then send the $100k IOU from the bank to you to someone else, and now bam you are in debt. Hopefully you got a good asset in return!