Using credit is not a bad thing — it's how you use credit that can be good or bad. Some benefits of using credit include: It's convenient and safer than carrying cash. You can spread out payments.
Do you have a clear idea of how much debt you have? Many people may avoid thinking about their debt load because it causes stress. Learn to cope with debt by paying it off strategically.
- Start by making a list of everything you owe, whether it’s a mortgage, a credit card or student loans.
- Focus on paying off the most urgent debts—loans with the highest interest rates cause the greatest financial impact if you don’t pay them off.
- Cut back on other spending so you can pay off debt faster. It will save you money in interest and allow you to focus on other financial goals.
