“For individuals, it has to do with discipline in spending because going into debt particularly for the purpose of consumption is not often advisable. Most times it is lack of self-discipline that leads people to incur debt for consumption. As far as consumption spending is concerned one has to limit it within the scope of ones earning power. That is not living above your income and it takes a lot of discipline to do that.
There are also quite a lot of individuals that buy impulsively. They don’t have a budget, when they see something they like, they buy, sometimes people copy other people. Particularly women, they want to belong and not be left behind and before you know it they are in very embarrassing debts.
For corporates, they are in business and any corporate that want to grow can’t avoid debt. But again they have to measure the degree of debt that they get into. The level of the debt must be something that it will be easy for the corporate entity to service. If they incur debt that they do not have the cash flow, to service it can bring down the business.Another way is to ensure that you have more equity rather than going to borrow. Have people who can invest in your business as shareholders.