Debt is simply the money you owe; it is an amount of money or other property that is owed by one person, organization or company.
It is not the credit you owe as credit turns into debt. Getting into debt is very easy and maybe it is fun for some people as it might impress them.
At a first glance, people are happy. They can buy without having cash, and they can afford to get a car even without having the budget etc. but they missed the best part, they will drive this car for 5-7 years to make payments and pay a huge amount of interest for what already impressed them!
Debts can make your life easier or ruin your life but however bad your debt problems, there is a solution.
People who know how to handle debts and how to manage their credits can take advantage of debts, while people who do not have enough knowledge in debt management and creating debt reduction plans are always in trouble.
In most cases, there are very good reasons to take on debt. For example, students take loans which are a good thing but we insist that you must know how to handle and pay off your debts after graduation.
Also taking debts for setting up a business is good but it depends how the structure is going to be setup.
You must have a clear plan, and know how much money you would need and the most important, how to pay it back. In cases like these, debt is a part of the business success.
If you can afford to pay cash and limit the risk of taking debts, do it! Do not hesitate to pay by cash when you have the money.
The problem is when you borrow money but do not use it productively.
For more information on debt consolidation, mortgages and other related articles, go to www.globalproperty.co.za/debtconsolidation-page.html