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4.2.4 Managing and Repaying Debt

HS: High School

Created on October 23, 2025

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Transcript

Managing and REPAYING DEBT

Start

I can..

- Identify potential issues for credit cards - Formulate a plan to resolve credit card billing and payment issues

Time Management

Think about a time when you were really busy and so frustrated that you could not decide what to do next. ~ Too busy with activities you had no time to relax ~ Overwhelmed with schoolwork Knowing some time management strategies could help in situations like this.

Time Management

1. Determine which tasks are the most urgent & need immediate attention 2. Create a schedule for a day, week, month 3. Set goals and deadlines 4. Identify the reasons you put something off

How will you get everything done?

You have the following to do this week. - A big history assignment due in one week -Smaller Assignments -Part Time Job -Volunteering as a mentor

Use the 4 P's

1. Plan -make a schedule

2. Prioritize -make a list of your school assignments in order of their due dates

3. Productivity -set aside time to complete assignments

4. Procrastination -avoid distractions

Dangers of Credit Card Use

Scenario 1 - Credit Card Debt

Lily, a parent of two young children, uses a neighborhood childcare center for daycare. Although she earns a decent income, the cost of childcare has doubled in the last year, and with inflation, Lily has seen a 25% increase in grocery prices. Lily must rely on credit cards to get her through each month while she searches for a higher-paying job. Her credit card debt starts to add up quickly, and she becomes concerned.

Lily's credit card debt is not due to misuse of credit but rather to inflation and rising costs of living. While she is doing her best to control spending, some costs, like childcare, are unavoidable and entirely necessary.

Causes of Credit Card Debt

~ Increase in prices (inflation) ~ Having too many credit cards ~ No emergency fund ~ Being drawn in by card rewards ~ Spending more than you make

Remedies for Credit Card Debt

~ Create a budget and use it ~ Save for an emergency fund ~ Pay as much as you can toward your debt ~ Track your spending ~ Pay with cash as much as possible

Paying off Credit Card Debt

When people find themselves overwhelmed with credit card debt, they often have multiple credit cards. Trying to focus on all the cards at once can be frustrating, and the slow progress can be very discouraging.

Methods to pay off Debt

Debt Snowball Method ~ prioritize paying off the debt with the smallest balance first

Debt Avalanche Method ~ prioritize paying off the debt with the highest interest rate first

Both methods start slowly but build momentum quickly to help pay off debt

Scenario 2 - Paying Off Credit Card Debt

Marquiz has accumulated a great deal of debt using four different credit cards. He has reached the maximum balance for each credit card the interest rates high.

Continue this scenario in Edio.

Answer questions in EDIO then submit your lesson