Financial literacy is a topic that affects a lot of people differently. The ability to understand financial concepts vary from person to person. This is usually due to levels of exposure to financial information or understanding how to apply said information practically. Moreover, why applying such information is even more important. This is because when we realize why we do things, we understand whether the pursuit at hand is purposeful or meaningless to whatever goal(s) we are trying to achieve in life. We can start our journey into financial literacy by improving our money management skills first. We can do this by creating a budget, tracking our spending, and by defining wants from needs.

If you want to be financially stable and build lasting wealth, you must become financially literate; this means you must understand and speak the language of money. There are five pillars of financial literacy that you MUST learn. They are budgeting, debt elimination, saving, investing, and how to choose financial products.

Financial debt is any amount of money borrowed or owed. In a debt arrangement, the borrower is obligated to repay the sum borrowed at a later date, usually at a cost, which is called the interest. Individuals enter into debt for a variety of reasons. However, few repay their debts in a timely manner. As of September 2020, The Bahamas had $2.1 billion in consumer debt outstanding and $123 million of that debt is listed as past due. Why do some people neglect paying off debt? The reasons range from lack of cash flow and know-how, to societal pressure and lack of self-control. This article will explore seven reasons why people stay in debt.