Imagine a household who makes ~$490,000/yr in income. Their recurring bare necessities (mortgage, bills, car payments, health insurance, 401k, etc) are about $3,400/mo. They spend another ~$1,400/mo. on “other stuff”. They also have a CC payment they make interest-only payments on at $400/mo. Their mortgage, car loans, student loans, CC balance, and all other debt add up to $3.2M. The head of household is about 45 years old. How bad is their financial situation? Now factor in:
The household has ways of making extra money. In fact, if they demand a raise from their employer, they know will get it, within reason. They also know they play such a key role in their company that there is no way they can be fired unless the company goes out of business.
The bank where all their loans and Credit card are held is owned by friends who the head of household handpicked to start the bank. If they ever need to refinance their debt or defer payments, they know the bank will work with them.
The society of the entire town, city, state, country, continent, planet, and universe is completely dependent upon this household not going bankrupt.
Do they have a debt problem? Certainly. Will there be some uncomfortable belt-tightening at some point? Very likely. Are they fucked? Not at all.