Understand the Risks and Benefits of Debt. br Debt can be a powerful financial tool when used wisely but it also comes with risks. Understand the difference between good debt such as a mortgage or student loans which can lead to future financial gain and bad debt such as highinterest credit card debt. Managing debt responsibly by borrowing within your means and having a solid repayment plan can help you leverage debt to your advantage without jeopardizing your financial health.