There may not be any direct connection between technical debt with your bank, and you would never receive a collection call for it, but there are a lot of similarities between technical debt and financial debts. Just like there are different types of financial debts like car loans, student loans, credit card loans, home loans and much more, technical debt also has a lot of variety in it like design, code duplication, and others. Moreover, just like you are legally bound to repay the amount you borrowed from the lender along with some extra payment called interest, you should also repay technical debt along with some interest which is the extra effort you put in for the rework.
Irrespective of the debt, whether it is technical or financial, you cannot ignore it for long and allow accumulating it. In both the cases, you would find yourself in a debt trap and have no ways to manage and come out of the debt trap. When financial debt reaches to unmanageable proportions, it starts to affect your personal and professional life along with your health as well. Similarly, tech debt affects the health of your business, and if it reaches to uncontrollable amounts, it can eventually strangulate your business and kill it.
The Basic Scenario
Think about the basic scenario deeply, and you would know that you borrow money when you want to have something fast and do not want to wait for the right time. It is the same in technical debt. The development team wants to release a project early or within the deadline and avails some shortcuts to meet the timeline which causes inefficiency and creation of an imperfect code. Repaying your financial debt makes you work more to arrange the money, and technical debt also makes your team work more to rectify the quality of the code.
When tech debt reaches to an unmanageable amount, codes become hard to change, and you have to finally give up just like you have to file for bankruptcy when you cannot repay your credit card debt. Moreover, in real life, a little bit of debt is required to live properly and similarly, a little bit of tech debt is also beneficial for the company. It takes less time to release and also costs less. Therefore, as long as debts can be repaid on time it is good but when it becomes hard to pay back, it is bad.
The Financial Factor
Faulty codes which result in tech debt are also a huge financial burden for your company. When compared with the financial debts, then the amount of effort and time that you put for refactoring the faulty code can be compared to the principle amount of your financial loan. Moreover, the extra costs paid when such codes have to be reworked in future, it can be compared with the rate of interest of any financial loan. Therefore, repayment is compulsory for both, and you can click here to know about ways for repayment.