Yes, large debts can be incurred, but they can also be overcome. I was 27000 in debt in my Sabyn campaign. It is .81, as I don't have 1.0 until tommorrow, so I can't comment on that yet, but I think they'll be my first campaign.
Anyways, after I took Axum, Meroe, and Ubar, I've finally gone into the black again....so just because your extremely in debt doesn't mean you can't come back.
Just make sure you play out every single battle, and use wise tactics, maintain formations, etc. to minimize losses, because you won't have reinforcements for some years.
BTW, speaking of maintaining formations....the left-alt key is critical when moving your forces. Your men will maintain their formation while moving. Be paitient, and have your men walk, don't run unless it's absolutely necessary. Tired men don't fight as well as fresh ones.
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