Debts, if used wisely could be a key tool for your success, but if managed incorrectly, could also be your downfall. <\/p>\n\n\n\n
In a conventional sense, debt, in simple terms, is money borrowed by one party from another party with an agreed upon number of years with additional interest. Getting a loan, and thus incurring personal debt is a financial instrument for consumers to own big ticket items and to improve their standard of living. <\/p>\n\n\n\n
The Shariah concept of debt is the same, except that there is no interest charged on the principal amount of the loan because charged interest is considered Riba and is also one of the major sins in Islam.<\/p>\n\n\n\n
However, having personal debt may be a dreadful thing to some, as some fear getting caught in the spiral of debt due to reasons such as poor financial control, low salary, high expenses etc. Beyond that, having too much personal debt will also affect your risk appetite when investing.<\/p>\n\n\n\n