Apparently it's smart to be in debt and pay it off because otherwise you can't buy a house or whatever because for some asinine reason it's considered not trustworthy if you only spend money you actually have?
Exactly, it easy enough for a bank to check your income, but a single year's income isn't going to repay a home loan. A pattern of entering debt and then consistantly
repaying that debt, on time mind you, is what a lender wants to see.
The same with seeing how much time you spent in your life unemployed, if you lose one job and have a new one in a few days or weeks, this is something banks like to see.
These things show that you'll hustle your ass and repay a twenty year loan.
Makes a huge amount of sense if you stop and give it a few seconds of thought.