In today's world, the purchase of "big ticket" items requires the use of debt. It would be nearly impossible to purchase a house-particularly early in one's life-without using a mortgage. It is also extremely difficult to purchase a car without borrowing the money to do so. Many people use home equity loans to make improvements to their house or for other major purchases. And with the rising costs of higher education, many people borrow for college expenses. Utilization of debt is necessary, but it needs to be used wisely to ensure your long-term financial health.