Not All Debt Is the Same (Here’s the Real Difference)

Not all debt has the same cost, purpose or repayment terms. A credit card balance, car loan and student loan can all involve borrowing money, but the interest rate, repayment period and financial consequences can be very different.

Before deciding whether debt is manageable, understand what you are borrowing, what it costs and how you will repay it.

Watch How Debt Works: Interest Explained for Beginners for the complete beginner lesson.

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