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Having debt does not automatically mean you are bad with money. People borrow for many different reasons. What matters is understanding what you owe, what the debt costs and how repayment works.

Learning how debt works can replace uncertainty and judgment with useful financial information.

Watch the complete lesson How Debt Works: Interest Explained for Beginners on Beginner’s Personal Finance.

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Beginner's Personal Finance
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Which matters more when dealing with debt: knowing what you owe, knowing what it costs, or knowing what to do next?

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