Many people are unsure of what is outstanding debt.
Well, outstanding debt is debt you owe to a creditor or multiple creditors. Outstanding debt can be on a credit card, loan or student loan. What is important to know about your outstanding debt? Many credit scoring models evaluate the amount of debt you have compared to your credit limits when calculating your credit score. If the amount you owe is close to your credit limit that is likely to have a negative effect on your score. So keep credit card balances low, try not to max out your credit cards in the future in order to keep your credit score high.