Understanding Debt: Introduction

In the previous module you learned about spending money and the various expenses that most people encounter. Loans are one such common type of expense that many people have.

Loans can come in a variety of forms: education loans, car loans, home loans, etc. Loans are a form of debt, or money that is owed. In this section, you will learn about debt. You will learn that debt can be classified as good debt or bad debt. In addition, you will learn about short-term and long-term debt and understand the difference between the two. Lastly, you will learn to identify the financial habits that can lead to debt and the decision-making skills tthat can help you stay out of debt.