The amount of borrowed money is called dept and it actually is the money that a person has spent but does not possess. So, money borrowing has it’s own advantages and disadvantages.
By borrowing money a person can get things right now instead of waiting to have saved the needed amount. So by debt a person can get ahead, such as to buy a car which is needed to get a new job.
The disadvantage is that debt costs money. That is because more money than borrowed have to be paid back because by borrowing money a person pays back not only the principles but the interests as well.
In the next sections there will be a look at the most common kinds of debt, including the traps that need to be avoid, how to make the best use of borrowing methods that are available and how best to minimize with the existing dept.
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