In business, it is considered good to have some gearing (or leverage), and there are acceptable levels of gearing for different industries.
What about for individuals and households? What is the ideal debt ratio for families?
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What is ideal debt to equity ratio :
"It's common for large, well-established companies to have Debt-to-Equity ratios exceeding 1. For instance, GE carries a Debt-to-Equity ratio of around 4.4 (440%), and IBM around (1.3)130%."