Understanding Debt – The Basics, Debt can have serious negative side-effects that influence your entire life.
Chances are good you have some sort of debt.
Unfortunately, though, without a proper understanding of debt, you can quickly dig yourself into a deep, unending financial hole.
This course will explain the key features of any loan and the types of debt that you should be aware of. It will also explain the benefits and pitfalls of debt, and offer advice on how to get yourself out of debt.
The words ‘debt’ and ‘loan’ are essentially the same, and we use them interchangeably.
Basically, a loan is a specific amount one borrows from another party, and debt is the total amount of loans one has outstanding.
Debt is used by both individuals and corporations as a way of making big purchases which they cannot afford under ordinary circumstances – purchases they can’t finance upfront.
Debt is stressful. When you have high levels of debt, there’s a very good chance that you don’t want to think about it at all.
For some people, that means avoiding opening bills and not looking at statements. However, while out of sight means out of mind, this behavior doesn’t help you pay off your debt.
So, in this course, let’s discuss debt in more detail.
I wish you happy learning!