The only difference between technical debt and financial debt is that costs are more often known in advance when taking on financial debt. Both types of debt are a tool when used intelligently with purpose and a plan to manage it, and both can take a devastating toll when used recklessly or imposed through misdirection or miscommunication.
Acceptable vs. unnecessary debt
The original heading here was “necessary vs. unnecessary debt.” On further reflection, though, I realized that the only good reasons for incurring debt are time drive. If time is removed as a factor, there is no reasonable need for debt. So then it becomes a question of when time is important enough of a factor to make debt acceptable. The only context I can think of where time is universally an acceptable driver for debt is in an emergency.
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