So, what exactly are credit and debt? And why are they dancing? Well, the relationship between credit and debt is an important one that you’ll need to understand while traveling along your path. Essentially, credit is your ability to borrow money, while debt is your obligation to return it. The problem comes about when you fail to do so. This is when it becomes a dance between the two.

Let’s talk about the consequences of poor credit and the management of your debt. Excessive debt can:

• Harm Relationships
• Cause Mental & Emotional Strain
• Negatively Affect Your Credit Score
• Keep You From Reaching Your Savings Goals

Now let’s remind you of your responsibilities as a borrower so that your debt can be properly managed. Remember to:

• Pay Your Debt Promptly
• Only Borrow What You Can Repay
• Read and Understand Your Credit Contract
• Promptly Report Any Lost or Stolen Credit Cards
• Notify Creditors If You Can’t Meet Your Payments

Financial Beginnings is a national 501(c)(3) nonprofit that empowers youth and adults to take control of their financial futures. Their educational programs incorporate all aspects of personal finance to give individuals the foundation they need to make informed financial decisions. Financial Beginnings reaches more than 200 K-12 schools and colleges and more than 100 community-based organizations annually, serving all groups with special focus on populations most in need. For more information, visit www.financialbeginnings.org.