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Financial Management: Understanding Debt

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Financial Management: Understanding Debt and Risk As a person advances in their ability to generate income, they will typically find themselves with an increasing number of opportunities to acquire debt. If a person desires a new car, they can often purchase one with someone else’s money; if a person wants a larger television, they can often choose to pay for that with borrowed money as well. Understanding debt and learning how to manage the financing of one’s consumption becomes more important as these opportunities present themselves. Through an analysis of my own personal finances, I was able to better understand the debt that I have, the costs and risks associated with that debt, and whether potential creditors may find me a default risk.
Analysis of Debt Through an examination of my finances, I was able to establish that the only debt I currently carry is in various installments of student loan debt. This debt is all unsecured, meaning that I do …show more content…
(n.d.). Secured vs. unsecured loans: What you should know. Retrieved from https://www.experian.com/blogs/ask-experian/secured-vs-unsecured-loans-what-you-should-know/
Hufford, B. (2013). Let no debt remain outstanding. Dental Economics, 103(3), 64. Retrieved from https://search-proquest-com.ezproxy2.apus.edu/docview/1426115437?accountid=8289
Is timing flawless for your 5 C's of personal credit? (2014, January 20). Daily Herald. Retrieved from https://search-proquest-com.ezproxy1.apus.edu/docview/1490575884?accountid=8289
Nyayieka, F. (2018, February 22). Using debt to build wealth. The New Times. Retrieved from https://search-proquest-com.ezproxy2.apus.edu/docview/2006912653?accountid=8289
Strischek, D. (2009). The five Cs of credit. The RMA Journal, 91(8), 34-37. Retrieved from https://search-proquest-com.ezproxy2.apus.edu/docview/209782549?accountid=8289
United States Department of Education, Office of Federal Student Aid. (n.d.). Interest rates and fees. Retrieved from

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