Debt can be a useful tool for achieving goals, but it can also be a source of struggle. People without debt tend to report higher life satisfaction. Debt is essentially borrowed money that must be repaid, often with interest. Not all debt is considered bad, as some types can improve earning potential or quality of life.

The type of debt and reason for borrowing matter. Debt taken on for things that gain value, such as a home, can be seen as good debt. Further information on managing debt and distinguishing between good and bad debt is available from Achieve.

Those looking to understand the basics of debt and its impact on their lives can learn more about the key takeaways and facts surrounding debt.