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Understanding Debt: A Multifaceted Perspective
Debt often evokes negative emotions, as most people grow up heeding warnings from their guardians about its dangers. Phrases like "never get into debt," "buy only what you can afford," and "debt will get you into trouble" dominate the narrative. However, debt can be both beneficial and detrimental, depending on its nature and context.
What is Debt?
At its core, debt is a financial agreement where one party borrows money from another with a commitment to repay it. This borrowing could occur between individuals or institutions, and the repayment typically includes interest. Debt can be classified into two primary categories: secured and unsecured.