When it comes to personal finance for an individual, debt can be very useful. Debt makes it possible to consider major projects of all kinds, such as buying real estate or a vehicle, going back to school, starting a small business, and so on. Used wisely, debt can even be a lever for accumulating wealth by making it possible to acquire and grow an asset. This is generally the case with a home, for example. 

However, as the soaring interest rates of the past few years have reminded us, debt can also become a trap that undermines the financial position of an individual or a household. 

Here are five basic facts to know that can help with good credit management.