Do the rich have to pay interest on their debt, or is it just me who has it on his mortgage? I tend to avoid taking loans because of the riscs and because of interest, why do the rich take up this debt?
Also, loans can help with liquidity. I'd rather have $1,000,000 cash and $999,999 in debt than $1 to my name. You can work with a million dollars in ways you can't with $1, even if your net worth is the same.