How do I manage my debt?

What are the risks and benefits of having a credit card?

Credit cards can be both helpful and risky:

• Benefits: They’re useful for building credit and to have access to money in case of an emergency.
• Risks: High-interest rates can accumulate quickly. Avoid using credit cards to pay for things you can’t afford. You should strive to pay off your credit balance every month.

What is a ‘Credit Score’?

Your credit score is a number from 300-900 that represents your creditworthiness. This is important because:

• Lenders use it to determine your eligibility for loans, credit cards/limits, and other financial products. 
• Landlords often use credit scores to screen potential tenants. 
• A higher credit score typically means better loan terms and lower interest rates.

Some of the best ways to have a high credit score is to pay your bills on time and to try and spend less than 30% of your credit limit each month.

How do I deal with debt?

If you find yourself in debt, you have the option to create a payment plan. Contact the company or collection agency you owe money to and discuss setting up a payment plan.