Americans Are Divided on Whether You Can Be Wealthy While in Debt: Here’s What the Experts Say

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considered wealthy while you have debt. Of the 66% who believe it’s possible to be rich while you owe money, 31% feel that the debt has to be tied to a mortgage.Read More: 5 Key Mindset Shifts To Financially Become the Top 1%, According to Humphrey YangFind Out: 6 Subtly Genius Moves All Wealthy People Make With Their MoneyThere is such a thing as good debt, and it doesn’t necessarily need to be mortgage-related. The rich know this, and understanding how to use borrowing wisely can make you very wealthy indeed. The critical factor isn’t the presence of debt, but the type of debt, its cost and what it’s being used for.Also see what “wealth” means for Americans in 2025.“The idea that wealth and debt are mutually exclusive is a common misconception, particularly for those who view all debt as a negative,” Mark Gelbman, financial advisor and owner of Strategic Wealth Solutions, told GOBankingRates. “However, for many wealthy individuals and businesses, debt is not seen as a liability, but rather a powerful tool used to increase wealth.”For many well-off people and companies, balancing wealth and debt is not only feasible but also typical and frequently an advantageous financial circumstance. “Debt and wealth go hand and hand actually, but most people can’t wrap their heads around this because we have been programmed to think of debt as a dirty word,” said Joe Camberato, CEO of National Business Capital.Check Out: 5 Ways You Can Reduce Your Tax Bill Like a Millionaire, According to Robert Kiyosaki“More than 7 in 10 Americans are in debt. The wealthiest aren’t in debt. They use debt,” Howard Dvorkin, CPA, an advisor and author, as well as chairman of Debt.com, told GOBankingRates. “Instead of using cash, they leverage their assets by borrowing against them.”Dvorkin also provided an example of leveraging debt. “So for instance, they might put up their real estate holdings as collateral on a loan at 4% interest, then invest that money in government bonds at 4.75%,” he said. “They’re then guaranteed to make money.”Paul Ferrara, senior wealth counselor at Avenue Investment Management, agreed. “Wealth and debt can coexist, but what distinguishes the two is the utility of the debt (what it’s used for) and its structure (how it’s logistically developed),” he said. “A person with $10 million in net worth with a $2 million mortgage on a ‘sheltering, appreciating’ property is in a profoundly better prospect than someone with the same liability attached to depreciating asset liabilities or lifestyle spending.”Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,786.50 -15.25 (-0.22%)Dow Futures47,235.00 +21.00 (+0.04%)Nasdaq Futures25,465.75 -109.50 (-0.43%)Russell 2000 Futures2,437.80 +0.30 (+0.01%)VIX19.00 +1.83 (+10.66%)Gold3,978.50 +18.00 (+0.45%)PortfolioSign in to access your portfolioSign inTop gainersHTZ Hertz Global Holdings, Inc. 6.73 +1.79 (+36.23%)XMTR Xometry, Inc. 62.62 +14.05 (+28.93%)PAY Paymentus Holdings, Inc. 36.10 +7.49 (+26.18%)MTSR Metsera, Inc. 73.18 +12.45 (+20.50%)SANM Sanmina Corporation 163.58 +23.24 (+16.56%)Top losersDGNX Diginex Limited 18.25 -5.38 (-22.77%)NCLH Norwegian Cruise Line Holdings Ltd. 18.79 -3.39 (-15.28%)NVTS Navitas Semiconductor Corporation 10.46 -1.79 (-14.61%)ZTS Zoetis Inc. 124.46 -19.89 (-13.78%)WRD WeRide Inc. 9.41 -1.50 (-13.72%)Most activeNVDA NVIDIA Corporation 198.69 -8.19 (-3.96%)PFE Pfizer Inc. 24.30 -0.36 (-1.46%)HTZ Hertz Global Holdings, Inc. 6.73 +1.79 (+36.23%)PLTR Palantir Technologies Inc. 190.74 -16.44 (-7.94%)GRAB Grab Holdings Limited 5.79 -0.28 (-4.70%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 101,995.17 -4,622.55 (-4.34%)AMD Advanced Micro Devices, Inc. 250.05 -9.60 (-3.70%)ETH-USD Ethereum USD 3,328.42 -294.36 (-8.13%)SMCI Super Micro Computer, Inc. 47.40 -3.35 (-6.60%)UPST Upstart Holdings, Inc. 46.24 -1.30 (-2.73%)Top economic events