Debt can be a useful financial tool if managed responsibly. Types of debt include credit card debt, student loans, mortgages, and personal loans. High-interest debt should be prioritized for repayment to avoid excessive interest costs. The snowball method (paying small debts first) and avalanche method (paying high-interest debts first) are effective repayment strategies. Avoiding unnecessary debt, making timely payments, and maintaining a low credit utilization ratio improve financial stability. Good debt, such as student loans or mortgages, can build wealth, while excessive debt can lead to financial stress.