Manage Debt Responsibly

Team Black Sun (Shayla, Kurt, Mezekir)

Overwhelmed With Debt

Many people have difficulty with debt and managing it responsibly, it does not matter what age group they are in as debt knows no limits. With the right tips and tools for four different age groups, even you can learn how to manage your debt.

Stage 1: High Schoolers

  • When applying for a job, a new bank account to put your saved up money in, or a credit/debit card, any high school student should know that
  • If a person has to apply for loans in order to pay for college, the person should know that to manage their debt, they need to pay on time, and pay in full/above the required minimum payment in order to avoid paying more than necessary and for years longer than they should have paid.
  • To start building a credit score a person needs to pay bills on time and not apply for too many cards at once. They can also hold a store card, or as a last resort, have secured credit. When it is seen that you pay in full, on time, and in general are a responsible consumer, your credit history will be great and you will not be seen as as a high risk client.

Stage 2: College Students and/or Young Full Time Workers


  • You open for first checking account this will allow you to withdraw and or deposit funds easily. Open a savings account next can help you accumulate savings and interest.
  • One way to deal with a student loan is you have a good enough credit you might be granted grace period. If your grace period is long gone first step is to understand what your dealing with.
  • One way to build their credit score is having a credit history. A credit card is a simple tool to establish to credit history and begin working to score.

Stage 3: 22-50 Year Old Adults

1.If you're just starting out with credit, a secured credit card is a good way to go, because the credit limit on your card is usually equal to the security deposit you place with your financial institution. That way you don't spend excessively.
2. have your income figured out, including financial help from your parents. Make lists of all your fixed expenses and your variable expenses. Seeing your expenses at one time will make you aware of what you have left to save or spend.
3. Building your credit is extremely important. Credit is used as a check for almost everything: apartment application, mortgage loans, car loans, etc., so get a credit card early on and use it responsibly.
4. Pay your bills on time, every time, don’t get close to your credit limit, a long credit history will help your score, & only apply for credit that you need.

Stage 4: 50-70 Older Adults

  • The way that older adults can invest for retirement is by opening a retirement account like a traditional IRA, Roth IRA, or 401K, etc. They can put a little money each month into an account to have a large sum saved up by the time they are ready to retire.
  • The way that people in this age group can pay off a lot of debt and still manage credit is by creating budgets to find out how much they can contribute to each thing and still have money left to add to retirement funds, and for needs and wants.
  • Lastly, to protect their credit score, these people can pay their bills on time and with as much money as possible, which also lowers your amount owed, diversify their investments, and not apply for too much credit at once.