Debt is an amount of money that is owed to another person or company when you borrow money after you have spent your savings. People can get into debt in many ways. The most common ways people get into debt include reduced income, divorce, poor money management, credit cards, gambling, or not saving. In credit and debt, there are many consequences that may put pressure or added stress on your life, which is why it is very important to manage your finances correctly. Consequences of credit and debt include not being able to repay, getting yourself into more debt, and receiving a bad credit report.