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Three Steps to Managing and Getting Out of Debt

Debt is money that is borrowed that must be repaid, usually with interest, over time. Some types of debt help you generate wealth, like buying a home with a mortgage, or future income, like student loans to pay for college education. Consumer debt, such as credit cards, auto loans, or personal loans, won’t increase your net worth or future income because the items depreciate in value, meaning they are worth less over time. Debt can build up quickly when not managed carefully. Follow these three steps to managing and getting out of debt:

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