It is generally accepted that debt is a bad thing...
but is it, really? Debt can allow us to enjoy the material things we cannot afford today.
Debt allows financial institutions to leverage themselves and thrive, to loan to governments and so on.
Debt allows retailers and manufacturers to accelerate inventory turns and keep people employed.
It is fair to say that without debt products like mortgages, loans and credit cards, our economy would be in a terrible state today (yes, even worse than it is already).
So in many ways, debt is a good thing when you look at it from a macro-level.
But the reality is that there are plenty of dangers of carrying too much debt.
While it is true that debt weakens the value of every dollar we earn (because we must now pay interest to carry this debt), there are other risks, big risks associated with carrying debt.
Here are the three biggest risks you face if you are carrying too much debt.

1. Default Risk.
   The risk that you default on your debt and ruin your credit score is heightened when you carry more debt than you can afford to pay.
   But of course default risk is more than just ruining your credit.
   It could mean having to file for bankruptcy (and the consequences of bankruptcy reach far beyond the scope of this article!).
   
2. Relationship risk.
   When you carry too much debt, you can severely impact your personal relationship, whether with spouses, family members and other loved ones.
   When friends are able to indulge in an exotic trip or other adventure, you may have to pass because your debt levels do not allow you use your remaining credit (if you even have remaining credit).
   As well, with debt comes personal tension in relationships with those with whom you are closest.
   Few spouses condone high debt levels as it can impact the financial future of the family unit.
   
3. Health risks.
   When you carry too much debt and have difficulty repaying that debt, you end up putting yourself under greater stress.
   This could be pressure about where you will find the money for your next payment, how you will pay the rent or mortgage, how you will feed your family, etc..
   The point is that the pressure that comes up from too much debt is bad pressure and normally evolves into other health problems.
   

While these risks are very real and very normal, avoiding these risks can be easily achieved by carrying just the right amount of risk instead of way too much risk.
This may mean reducing your debt in half by incorporating a debt repayment program into your budget or using savings to reduce your debt load.
By reducing your debt loan, or repaying it entirely, you will find that your life and lifestyle will improve almost immediately.
However, if you are reluctant to repay debt consider the three risks discussed here and be prepared to face them head-on once they start to edge into your life.