Credit and debt play a significant role in personal and business finance, influencing financial stability and long-term success. Managed debt refers to borrowing that is carefully planned and within one’s ability to repay, such as home loans, student loans, or business investments that generate income. Good financial habits—like timely payments, budgeting, and understanding interest rates—help keep debt manageable and even beneficial.
Unmanageable debt, on the other hand, occurs when borrowing exceeds repayment capacity, leading to financial stress and instability. High-interest loans, excessive credit card usage, and missed payments can quickly spiral into serious financial challenges, often requiring intervention like debt restructuring or consolidation. Knowing the difference between manageable and unmanageable debt is essential for maintaining financial health and avoiding long-term consequences.