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If a person has a house they are paying a monthly mortgage payment towards, no one in America would consider them "broke".
I was in debt for several years from college tuition, but would not have been considered "broke" because I managed a job that met my essentials plus enough to pay down my tuition loans.
Debt isn't seen as bad so long as it's being managed. Exceptions for Dave Ramsey fan types.
You could say college and housing and medical stuff should never out a person into debt and I would agree. But that wasn't the question, it was about general perspective in the US.
Yeah. Being broke is a problem with cash flow, not the balance sheet.