Think about that . When the music stops there's always someone who can't find a chair. So bye-bye baby. It's off to a trustee sale of the collateral, or bankruptcy court. And that's just what happens every day in our economy.
Money is borrowed to pay the interest on the original loan.
Now the loan is bigger, and the interest is higher. The next time the interest comes due, it happens again. If you plot the increasing debt as a curve, it goes upward at a higher and higher rate until it becomes unimaginably large. All of this created debt is needed to support the small original loan. In other words, most of this debt is just on paper.