Debt

Debt is when you owe money to someone or something.

It’s like carrying a backpack with rocks, where each rock represents money you’ve borrowed. Each time you pay back money you borrowed, you get to take a rock out of your backpack.

A small rock (a little debt) is manageable, but as you get more debt, your backpack gets heavier. This weight slows your financial progress.

But it gets worse - interest on the debt makes the rocks grow bigger, adding more weight over time. You should balance borrowing with your ability to repay so that you don’t get weighed down.

You can’t always avoid debt, but it can slow you from reaching financial goals. Manage your backpack to keep it light enough to carry comfortably.