Credit Cards: Borrow money for purchases, typically with high-interest rates if not paid in full each month.
Loans: Borrowing money to pay for something large, like a house or car, with a repayment schedule over time.
Mortgages: A specific type of loan for purchasing a home. Mortgages typically have lower interest rates but require regular payments over a long period.
Tips for Managing Debt:
Pay Your Bills on Time
Late payments can damage your credit score.
Avoid High-Interest Debt: Pay off high-interest debt like credit cards quickly to avoid excessive charges.
Maintain a Healthy Credit Score: A good credit score makes it easier to borrow money at lower interest rates.
