New loans pay off the old loans. The cycle repeats. Seriously, if you zoomed out and looked, the billionaires and some upper 9 figure millionaires are in debt against their assets which clears on death. But the debt itself is low interest, and the assets are appreciating faster. Its one reason they say “hit a million and never worry about money”, though I think that number is like 5mil now.

You never actually spend your money…

Buy, Borrow, Die!