How To Manage Credit and Debt

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Stage 1 High School Students

1. They should open a savings account and they should only use their credit card if they can pay the bill on time.


2. They should invest in a good degree that would get them a good job to make good money and be able to have a steady income.


3.They can pay their bills on time and take out a small loan that they pay off on time.

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Stage 2: College Students and Young Full Time Workers

1. They should always have some money in the account for purchases and emergencies and always pay their bills on time.

2. They should try to only take on loans that are a good investment such as student loans. A car loan is not necessary unless they absolutely need it to get to school.

3. They can not take on too much debt and put their money in a savings account so that it builds interest and invest some in stocks because they can afford to take risks.

4. They can establish a history of paying their bills and loans on time.

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Stage 3: Young to Middle Aged Adults

1. With living expenses, they should understand that they need to pay their bills such as a mortgage payment and if they do not pay on time, they will suffer a lowered credit score and/or threats of foreclosure. They also already have some debt with their mortgage and they cannot afford to take on much more.

2. Always make loan payments on time otherwise the bank or lender can take your collateral which can include your house in the form of a foreclosure.

3. Positive aspects of credit can include taking out loans for expenses when the loans can be paid off on time and using credit cards to make purchases only when the bills can be paid on time. Negative aspects can include going over your credit limit which can result in bankruptcy if you can't pay off your debts. Foreclosure can also occur if you don't pay off your mortgage on time.

4. They can protect their credit score by having a history of paying off all of their credit card bills and loans on time.

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Stage 4: Older adults/seniors

1. Older people can invest in many things to go towards their retirement.

2. They should invest in less risky options so they do not lose their money. Older adults can pay off a lot of debt by paying in bulk while staying on time for payments.

3. Many older people can protect their socres by paying their credit cards on time.

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