This is what I like to imagine will happen in Lords:
(Just replace the insect-people with Tierran Banebloods.)
Anyways, as for the debts, I think you’re in a good position if you have enough money to repay the debt and still have 1k crowns left over, with enough income to meet the interest payments. That is how I normally end on a only-child playthrough that only sends half his money, received the 800 crown ransom from Sabres, invested a few hundred crown’s into Garing’s invention, does the Forlorn Hope, buys the LC promotion, and fights at 2K.
However, simply meeting the interest payments won’t be enough. You need to remember that a good 30 crowns of your income will not be passed down to the next generation (15 is halfpay from Lieutenant Colonel, 15 is the annuity), so you may end up screwing your descendants over if you don’t concern yourself with at the very least making the debt smaller.