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I think about debt differently than most people. Probably because I had a lot of it.
I went to a private college and walked out with a mountain of student loans. At the time, it felt normal; everyone around me had debt too.
You sign the papers, you graduate, get a job, and make the payments. Simple enough, except it wasn't. It took years to pay off.
I remember how heavy that debt felt. Every month, a portion of my paycheck was already spoken for before I even earned it.
Today, I watch college graduates leave school with double or even triple the debt I had. It makes me tremble.
The bigger the debt becomes, the fewer choices you have. You can't take certain risks, move as quickly, or invest in other opportunities. You're spending time paying for decisions made years ago.
That's exactly how technical debt works.
What Is Technical Debt?
Technical debt is every technology decision that gets pushed into the future.
"We'll replace that server next year."
"We'll update that software later."
"We know that machine is outdated."
"We'll deal with cybersecurity after budget season."
"We'll get around to documenting that process."
At first, those decisions don't seem like a big deal. Just like student loans don't seem like a big deal when you're signing the paperwork.
The problem is that debt accumulates year after year. Until one day you realize a significant portion of your resources is being spent supporting yesterday's decisions.
The Interest Payments Nobody Sees
The thing that made my student loans expensive wasn't just the principal. It was the interest. Technical debt works the same way.
The interest shows up as:
- Increased downtime
- More support tickets
- Slower systems
- Security vulnerabilities
- Employee frustration
- Delayed projects
- Emergency spending
- Lost productivity
You may not see a monthly invoice labeled "Technical Debt Interest." Trust me, you're paying it every single day.
The Most Dangerous Kind of Debt
The worst technical debt isn't visible. It's the old server nobody wants to touch. The ERP customization nobody understands. The production machine is running software that's older than some of your employees. The spreadsheet that one person manages and nobody else knows how to use. Those things quietly become business risks.
Unlike financial debt, there isn't always a payment schedule reminding you that they exist.
When Is Technical Debt Too Much?
Technical debt becomes too much when it starts limiting your ability to operate, grow, or respond.
If your team spends more time maintaining old systems than improving the business... You have too much debt.
If upgrades are constantly delayed because fixing one thing breaks three others... You have too much debt.
If your plant manager is worried about a critical system failing every time a storm rolls through... You have too much debt.
If your cybersecurity posture depends on hope and luck... You definitely have too much debt.
What the Best Manufacturers Understand
The best manufacturing leaders I've worked with understand that not all debt is bad. Sometimes taking on technical debt is a strategic decision. Just like borrowing money to buy a house or grow a business can be a smart decision.
The problem isn't having debt. The problem is ignoring it.
The best organizations know where they are exposed.
The Reality
Every company has technical debt. Every single one.
The question isn't whether you have it. The question is whether you're managing it or whether it's managing you.
I learned a long time ago that debt has a way of showing up eventually. Student loans, credit cards, business loans….. Technical debt isn't any different. You can ignore it for a while. But eventually the bill comes due.
Just like life, it's a whole lot easier to make small payments over time than to deal with a massive balance all at once.
That's why the smartest leaders don't ask:
"Can we afford to fix it?"
They ask:
"Can we afford not to?"