What is the guidance of the Prophet, peace and blessings be upon him, and the righteous predecessors regarding the need for debt (loans), and has Islam warned against taking loans for permissible matters or without dire necessity?

Several prophetic traditions have warned against debt. It has been reported that the soul of a believer is suspended by his debt until it is paid off, and that whoever dies owing a debt will not enter Paradise until it is paid off. The Prophet, peace and blessings be upon him, sought refuge from it. Islam also encourages contentment, satisfaction with little, looking at those who are less fortunate in worldly matters, and that a Muslim should not incur debt except out of extreme necessity.