What is debt?

Once in our life we have probably got a loan from the bank or a friend and after you have used the money you will be expected to pay the money back. Sometimes from that money you can develop a business or the money will genarally help you.What if you don't return it?That is debt.Debt is when you are supposed to return the money but you don't,either purposfully or because you don't have enough money to do so. This is seen everyday with businesses and daily life,for example your friend gives you a toy but you lose the toy so you can't give it back to him.What are the consequences of debt? The consequences of Debt are pretty harsh and some of these consequences can even take your house away. One result of debt is that your interest will rise so if you are in debt of 10£ it will slowly but surely crawl up to the point where you will have to pay back 1000£. Another consequence is that you might be at risk with your job so that means you may be sacked or the money you earn will be used to fill the debt you are owing. This result isn't necasserily to do with financial result but it is to do with your mental health.As you can imagine if you are debt you will always have in mind the questions of how am I going to pay him back or what am I going to do.This will be a big effect on you which will cause you to always bite your fingernails in worrie or worse.

So is it always reasonable to take risks with loans or should you avoid it to avoid debt? I think you should take the risk when it is a reasonable one and when you are desperate. What do you think?


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