Debt is money that was borrowed and is now owed to another individual or an entity. You might borrow money to buy a house, pay for college or buy or a car. Applying for and using a credit card is another form of debt. If you charge $1,000 on your credit card, you have a debt to the credit card until your balance is returned to zero.
It’s always best to keep your debt to a minimum if possible. The more you owe others, the more it will constrict your ability to buy or pay for other items you may need. It’s especially important should an unexpected expense occur. If you have a lot of debt and no savings, you could find it very difficult to cover the cost without sacrificing something else.