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Managing Debt

What is Debt?

Debt is when you borrow money from a lender, such as a bank, family member, friend, or business. You repay the loan with interest, which is the cost of borrowing money. Loans may also be called notes. 

Know Before You Borrow

Whether you're considering student loans, a car loan, or a credit card, it's important to understand the true cost of borrowing. Knowing key debt terms can help you compare options and borrow responsibly.

Types of Loans

The interest rate stays the same for the life of the loan, keeping monthly payments predictable. 

The interest rate can change over time based on market conditions, which may cause monthly payments to increase or decrease. 

Require collateral, such as a home vehicle, or savings account. The lender may claim the collateral if the loan is not repaid.

Do not require collateral. Approval is typically based on credit history, income, and ability to repay. Student loans are an example of an unsecured loan.

Tips for Managing Debt

  1. Shop around: Compare interest rates and fees to save money.
  2. Understand costs: Use an APR calculator to see the true cost of the loan.
  3. Consider alternatives: Think about whether you need the loan or if there is another way to purchase the item.

Students may self-enroll in our Brightspace Financial Literacy course to explore more on car loans, credit cards, debt resources, and strategies for paying down debt. Complete the course and earn a digital badge to showcase your financial literacy knowledge.

Earn a Digital Badge

Loan Calculators

Calculators can help determine total costs of a loan and help you make an informed decision about taking on more debt.

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Contact the Office of Student Financial Literacy

MSC 203
Harper Student Center
45 Courtenay Dr, Fl 3
Charleston, SC 29425-8917

Hours of Operation: Monday-Friday, 8:00 am-4:30 pm

Phone: 843-792-7744

Email: financialliteracy@musc.edu

Book an Appointment