Debt

Debt refers to the amount of money borrowed by an individual, company, or government, which must be repaid with interest. Common types of debt include credit card debt, student loans, mortgages, and personal loans. While debt can be used to finance important purchases like education or a home, it can become problematic if mismanaged, leading to high interest payments and financial stress. Effective debt management involves understanding loan terms, keeping borrowing within one’s ability to repay, and prioritizing high-interest debts for repayment.

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