Debt - an amount of money borrowed by one party from another. Debt is used as a method of making purchases that are not affordable under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that is to be paid back at a later date, usually with interest.
While debt enables purchases, it also can create another level of stress and anxiety that can go beyond a healthy level.
I read an article that explains that getting out of debt, makes your brain function better. The removal of debt improves:
- Cleans up cognitive functioning of the brain
- Lessons anxiety
- Improves impulse control
To combat debt, simplify your finances as much as possible. Pay off your smallest debt balances and continue until elimination. A key is a personal budget for planning next steps.