Depends if you also have assets to cover the debts. Most don't, or have no idea how to use those assets to manage their debts. It matters if the assets are appreciating or depreciating, and the risk of losing the asset. For instance, cars make horrible assets. The rates and terms of the debts also matter. Generally, credit cards are high interest revolving debt, which is far inferior and much more uncomfortable to manage than fixed-rate low interest loans. Finally, cash (flow) is king. If you have the cash flow (for most, income) to manage the debt payments with no impact on your day-to-day life, and your cash flows are stable and relatively low risk, there is little to worry about month to month.