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A loan is a specific agreement where a lender gives you a fixed amount of money that you repay with interest. Debt is the broader term for any money you owe, including loans, credit cards and unpaid bills. All loans are debt, but not all debt comes from a loan.

Good debt is typically used for things that grow in value or increase your earning potential, such as a home loan or funding your education. Bad debt is usually high-interest borrowing for everyday spending, such as retail credit or store cards, that does not build long-term value.

Two common approaches are the snowball method, where you clear your smallest debts first for quick progress, and the avalanche method, where you target the highest interest rate first to save more over time. The right approach depends on what keeps you motivated and what your finances can support.

A Debt Consolidation loan combines multiple debts, such as retail accounts and existing loans, into a single monthly repayment, often at a fixed interest rate. This can simplify your finances and reduce the admin of managing several accounts, though approval depends on your credit profile.

Debt Counselling, also known as debt review, is a legally regulated process that restructures your existing debt into a single, more affordable monthly payment. A registered Debt Counsellor negotiates with your creditors on your behalf, and you are protected from legal action for the duration of the process.