> Why is avoiding debt a risk averse strategy? Note that they said avoiding ALL debt. For example, my student loan collects interest at a rate of 2.9%. Theref

> Why is avoiding debt a risk averse strategy? Note that they said avoiding ALL debt. For example, my student loan collects interest at a rate of 2.9%. Therefore, it makes sense to maintain that debt if I believe (and accept the risk) of making an investment that pays back a rate of 10%. Financially it might make sense to keep that debt, pay the minimum and invest cash into let's say an index fund. If you have a hardline stance that you NEVER want any debt, then you are basically saying you're highly risk averse (at least when it comes to ending up in the negative).