Learn the Language 2. Budget to Save 3. Save and Invest 4. I owe, I owe, so it's off to work I go. Liabilities are your debts.
Debt reduces net worth.
Debt is a tool to be used wisely for such things as buying a house. If not used wisely, debt can easily get out of hand. Why People Get into Trouble with Debt More than 1 million individuals filed for bankruptcy in 1997, up from 200,000 in 1978. That means lots of people are mired in debt. In some cases, they could not control the causes of their debt.