[BitWielder1]

So someone who owes a million on his fancy house and has $900,000 in the bank has negative net worth and is therefore poor?

[Lorianne]

If he loses his job or source of income, yes, he is.

[wbill]

So someone who owes a million on his fancy house and has $900,000 in the bank has negative net worth and is therefore poor?

Exactly. Conceivably, one could have an annual salary of $500,000 and be considered "poor", using this definition.

As always, there are lies, dammed lies, and statistics.

[Hieronymus]

It depends on how much the fancy house is actually worth. If he has $900,000 in the bank, owes two million on the house, and the house is only worth a million, assuming all his other assets and liabilities net out to zero, he is worth -$100,000. If the house is worth three million, then he is definitely rich, with a net worth of $1,900,000.

The person with a negative net worth may be materially comfortable, but is vulnerable to things such as inflation or loosing his job. Walking away from the debt may or may not be a good option. This can be a psychological burden, and may be a real problem when the house of cards collapses. Still, it is very different from wondering what one will eat tonight.