Managing Debt
A Loan or Credit Card account is basically a specialized Liability account. The most prominent feature of Liability, Loan and Credit Card accounts is that they usually have negative balances. These account types generally represent money that you owe and have a negative effect on your net worth. Some of these accounts are offset by Asset accounts with corresponding to the item for which the liability was incurred (such as a house or automobile). The offsetting asset accounts will hopefully have a higher value that the associated liability.
Financial goals are often focused on reducing the balances for liability accounts to zero. When building a financial plan, it is best to focus on reducing the liabilities that have the highest interest rate first.