Countries, companies, and people take out debt all of the time, of which, such is typically sensible, if the entity so borrowing the money has the ready capacity to pay that money back through their own future labor and sustained productivity. On the other hand, loans taken out in which those that are borrowing that money, be it countries, companies, or people, do not appear that they will ever fully pay back such a loan, and further do not appear that they can even make a sizable dent upon the principal of such a loan, let alone the interest rate so being charged; that thereof is the type of pending catastrophe, that economic systems, fiat currency, civilizations, and the like, collapse from.
Basically, that which is considered to be money, as issued and sanctioned by governments, operates as a good form of currency to the degree that such is accepted with confidence by those entities so utilizing it; and once that confidence is broken in regards to such money, then all sorts of cascading negative events are sure to occur. At the present time, the debt loads of countries, companies, and people have never been higher, and ever higher, these debt loads continue to grow, of which, from a practical standpoint, those that are lending money to those borrowing such, would typically thereby not only would charge a higher interest rate for loans that they are no longer so confident about, but further would reduce their loans so being made to those that they do not see as being reasonably safe to make loans to, in the first place. What has occurred, actually, is that in recent times for the most part, the interest rate so being charge by financial institutions has consistently been lower than what common sense would dictate would be an appropriate interest rate to be charged, taking into account the careful consideration of the risks so involved.
The real reason why those that borrow money can not only continue to borrow money but are able to, more times than not, to borrow at historical low rates, has everything to do, with basically kicking the can down the road, because if those financial institutions were to actually charge what they needed to charge for monies so being loaned out, they then would soon find themselves inundated with non-performing loans of such magnitude, that they would be subsequently overwhelmed with bad debt that could not readily be sold to somebody else, at anything other than a fire sale price. In other words, despite all of the debt that currently exists, that interest charge to that debt, cannot successfully be raised, because those that are indebted can't pay what they owe, currently; and thereby the increase of the rate of such, would take what is now unstable, but sort of basically functioning, and collapse it.
Yet, for every loan so made, the objective of that loan being made is for the lender of it, to be paid. That simply is not going to occur; and though financial institutions, price in a default rate for said loans, they also know for a certainty, the price for such is way, way too low. Lots and lots of money has been printed by governments because that seems to work as a way to keep their economies growing, and lots and lots of money has also been borrowed by companies and people, but the thing is, the piper has to one day be paid, and if not, the game so ends, very, very badly.