What is the burden of an internally financed debt?

The burden is the fact that it could be earning you more money elsewhere.

Let's give an example: Assume you have the option to buy a car at 1.9% financing or paying for it outright. Which would you do?

Of course you would finance it at 1.9%, and invest the money you would have paid for the car in something that will earn you more money (maybe a CD @ 3.5% or something).

Using other peoples money (i.e. the banks) increases leverage and your return on capital, assuming your return on cash is greater than the rate your borrowing at. But remember, borrowing also increases risk, especially if you don't have the funds to pay for it should $hit hit the fan.

So basically, the burden of internally financed debt is the opportunity cost (interest rate) you could earn elsewhere by financing it with someone else's money.

Hope this helps.

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