Debt, in one form or the other, is part of every person’s financial situation. This usually happens because some expenses cannot be met from savings alone. It could arise from, say, funding the purchase of a house or even a higher education. These may need some loan amount to ensure that the goal can be met at a time that best suits your needs.
A loan may also be required to meet unexpected and large expenses, such as medical emergencies. Or, you may be the person who tends to run up debt on credit cards.