Example: a person bought a car or a truck for instance and couldn't keep up the payments. They sell it to pay off the loan or the person who buys it assumes the loan. Ok, depending on what the vehicle is worth at the time maybe they had to kick in a few bucks but it wasn't the end of the world and the bank didn't send the storm troopers out to get them and their children. Hopefully they learned from the experience.
You sir are the one who needs to learn about the real world and lose the ignorance. If being debt free makes you feel warm and fuzzy that's your personal choice. But making the blanket statement as fact that debt will ruin your business just illustrates your ignorance.