A debt is anything that is owed to another person, company, government agency (e.g. the tax office) etc. Debts are most typically loans of money from a bank, but there are many other kinds of debt as well, such as personal loans from other people, credit card debts etc.

Debt is often thought of a bad thing, and often it is. Some people build up too many debts on which they can’t afford to pay the interest.

However, through ULearnMoney.com tutorials, we will explain how debt can be good. In short, if you can use debt to build up assets (remember our definition of assets is something that puts money in your pocket), then it can be a good thing.