7 Debt Types and How to Get Out of Them

There’s no doubt that credit has increased Americans’ purchasing power. Without it, many of us wouldn’t have access to homes, cars, and other everyday goods. Although, this reliance on credit has also normalized debt across the US.

With consumer debt now standing at $14.96 trillion and the average consumer owing $92,727, it’s important to understand how different debt types can affect your future and your finances.

Want to know more about the different types of debt? Let’s take a look!

How Car Loans Work

I’m graduating soon, and I’m going to be on my own financially. One of the things I’m sure I’ll have to do pretty soon is buy a car, as I’ll be moving off campus and won’t necessarily have easy access to my new workplace. But I’m not sure I understand how car loans work. What determines the rates on those–it’s my credit, right? But how is my credit calculated? And should I even take out a car loan at all, or is taking on debt to buy a vehicle a bad idea? Experts, please help!