Debt, good or bad?

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Ever since I started to be in charge of my own money I have always avoided debt like the plague. The idea of owing someone something and collecting interest is a terrifying thought, and I really didn't want to take part in it. Unfortunately with the way our world works debt is a necessary thing to accept in order to get further in life. In order to pay for school, buy a new car, buy a first house, and go traveling. Almost everything that is considered a must in order to lead a full and happy life requires us all to go into debt.

I remember in my first year of business at Mount Royal University that the idea of debt being good was discussed quite often. My micro and macro economics professors continuously stressed this fact, saying that debt is the only reason that countries have grown to be economic power houses. Unfortunately too much of anything is a bad thing, so at what point is there too much debt? Canada right now sits in billions of dollars of debt, how has this not created major economic problems for us all by this point yet?

Being students I am sure many of you are experiencing being in debt through school loans, maybe some of you are even nervous about how you'll pay them back once you graduate. When school is done you will have to start paying it back and the joy of being able to just pick up and leave is taken from you because of this responsibility. I believe the idea of being tied down by debt is what kept me from seeking it out for a long time. Most of us have no choice though when we're in school, we can not expect other people to pay for our education or bank on getting enough scholarships. So we sign ourselves up and hope for the best when it's time to start paying it back.

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I made the decision this year to purchase a new vehicle because my old one was going to fall apart any day. I had two choices; to buy another old not so great car with the money I had, or put a down payment down on a newer one and start financing a vehicle. After talking it out with my loved ones I decided I would for the first time sign myself up for some debt. I just signed the papers last week and to be perfectly honest with you I am terrified.

Although I love the car and know deep down that I made the smart choice, my skin crawls at the idea of owing so much money. So how on earth do people do this all the time? Buying a house? I could never! Maybe I am being crazy and over thinking it way too much but how do you handle being in debt? What makes you able to put the idea of owing so much to the back of your head? Or all you all just as terrified as me? This is life though, in all parts of our lives we will be gladly buying things we technically can not afford. I suppose getting used to this idea now isn't such a bad idea.