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Why is understanding debt important?

User Tmaximini
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5 votes

Answer:

Understanding debt is critical to both financial literacy and financial security.

Step-by-step explanation:

While most people have some debt, typically the importance of that debt is in direct proportion to the amount of debt they have. While some debt, such as a mortgage, business or automobile loan, can show stability and maturity, having more debt than you can pay can affect your health, relationships and your employment.

User Ro Marcus Westin
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