Deflation is only bad for fixed interest rate debt bearer. Adjustable interest rate debt goes lower along with deflation. The only problem for adjustable rate

Deflation is only bad for fixed interest rate debt bearer. Adjustable interest rate debt goes lower along with deflation. The only problem for adjustable rate is that it can't go lower when interest rate reaches 0 and deflation rate keeps going down. To fix that, allows interest rate to go negative. That means the principal of the debt goes down faster. If everything is floating down with deflation, it's not too bad. For the fixed rate debtors, well they made a calculated risk that inflation will go up.