As we practise social distancing there’s a lot we can do to occupy our time indoors. The decision to get some work done, Netflix and chill, read a book, get back on track with yoga, organise closets or get reacquainted with online shopping is ultimately yours. But more often than not, when women choose the latter, we tend to get carried away and then four Zara tops, three Revolve dresses and one pair of Jimmy Choos later we’ve racked up unwanted debt.

As a wealth manager, I’ve seen first-hand how debt can sometimes negatively affect people. I’ve seen them always needing more money to get the things they desire, and immersing themselves in unnecessary debt. Although debt can be scary, it can be an opportunity to take the proverbial bull by the horns once you understand how it works.

There are two different types of debt: good debt and bad debt. Good debt is often categorised as debt used to buy necessary items, like a home or paying for your university tuition which goes towards your education. In theory, good debt allows you to earn a return on your investment. For example, houses typically appreciate over time and a good education allows you and your children to get better jobs or earn a higher income. “Use other people’s money prudentially” is something business tycoon Michael Lee-Chin always says, and he knows money.

In contrast, bad debt usually attracts higher interest rates than good debt and is usually associated with items purchased that quickly lose their value and do not generate long-term income.

Yes, debt can be bad, but there are ways to make it work for you rather than against you. There are credit cards that can work in your favour if you practise self-discipline. I love fashion, so every time I go online to shop for the latest trends I use my NCB Visa Signature card to earn while I spend with the benefit of cash back. Similarly, my NCB Travel Mastercard (you can also use your Lovebird KeyCard) fuels my wanderlust by racking up points to help offset my travel expenses. Things I would have spent on anyway, I am now able to find ways to maximise my money based on how I utilise my cards.

When it comes to debt it’s important to find a balance. Many times we find ourselves debt-free but cash-poor. Good debt, also known as investor debt, has been a secret strategy the wealthy have used for years. Consider this: You acquire a loan to purchase an asset like real estate to develop homes you rent. You will be earning income that can help repay the loan and then some. Eventually, the value of the property will more than likely appreciate over time.

There are a couple of questions you should ask yourself when considering a loan:

• Is this something I need or is this something I want?

• Will this help me to produce income or benefit me in the long run?

• Is this a loan for education or lifestyle expenses?

• What’s the interest rate on the loan? Can I find a rate more competitive?

• Can I afford this loan? Does the monthly payment put a big dent in my monthly salary/income?

• How long will it take me to pay off this loan? Short-term loans like NCB PAY Advance can help in times like these when you need to stock up on essential items for your family.

Debt is not the enemy. If you take a disciplined approach and pay your debt on time, you can surely make it work in your favour.