CHAPTER 9: DEBT MANAGEMENT

• • DEBT MANAGEMENT

  Is a way to get your debt under control through financial planning and budgeting. The goal of a debt management plan is to use these strategies to help you lower your current debt and move toward eliminating it.
• REASONABLE DEBT

  Helps an individual to achieve a most fulfilled life. Pay off the debt on a schedule or throw a little extra its way when one has the means to do so. Both the interest rate and the amount of the deal are manageable. Conversely, slippery slope debt--the kind that grows and seems to build upon itself is unwanted. It deteriorates the quality of life and damages one's credit over time. It causes fear and anxiety and is difficult to repay due to the sheer size of the balance, the high-interest rate, or both.
• MORTGAGE LOAN

  A mortgage loan is a type of loan specifically used to purchase real estate. In a mortgage loan, the borrower pledges the property being purchased as collateral to secure the loan.
• SLIPPERY-SLOPE DEBT

  A course of action is rejected because, with little or no evidence, one insists that it will lead to a chain reaction resulting in an undesirable end or end. The slippery slope involves an acceptance of a succession of events without direct evidence that this course of events will happen.