Managing Debt

What Is Debt?

People working on a budget

Debt is an amount of money that someone borrows and has to repay later on. Different types of debt include good debt, bad debt, secured debt, unsecured debt, short-term debt and long-term debt. The key to managing debt is awareness. You will have an advantage if you know your debt limit and are aware of common debt traps. You gain more control when you manage your money properly.

Borrowing Tips

  • The less you borrow, the less you have to pay back.
  • Prioritize needs over wants.
  • Control impulse spending to avoid spending more than you can afford.
  • Save for emergencies so you don’t need to rely on credit.