Debt is money that you borrow and are legally obligated to repay — usually with interest. It can come from banks, credit card companies, the government, or other lenders. While debt can help you pay for things you couldn’t afford upfront, it also comes with risks if it’s not managed carefully.
People take on debt for many reasons:
Sometimes, debt is strategic. Other times, it’s a result of financial pressure.
Debt is borrowed money that must be repaid, usually with interest.
Not all debt is bad — but it needs to be managed wisely.
Understanding the types and costs of debt can help you avoid financial trouble.
Q: Is all debt bad?
A: Not necessarily. Debt used to buy appreciating assets (like a home) or invest in your future (like education) can be beneficial — as long as it’s affordable.
Q: How much debt is too much?
A: If your payments are eating up a large portion of your income, or you’re borrowing more to stay afloat, it’s time to re-evaluate.
Q: How can I get out of debt?
A: Start by creating a budget, paying more than the minimum, and prioritizing high-interest balances. You can also look into debt consolidation or speaking to a credit counselor.
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