Debt and credit are closely related but serve different purposes. Credit is the ability to borrow money, while debt is the amount you owe after using that credit. A credit card, for example, gives you access to funds, but once you spend it, it becomes debt until repaid.

Managing credit wisely—by making timely payments and keeping balances low—helps maintain a good credit score. On the other hand, excessive debt can lead to financial stress, higher interest payments, and a lower credit score. Understanding this balance is crucial for maintaining financial stability and securing better loan opportunities.