Getting smart about debt management
Here are some questions to consider that may help you take control of debt management and find a comfortable path to debt freedom that works for you.
Debt is any money that you’ve borrowed and promised to repay. When used strategically, it can help provide long-term value, stability, and opportunities — like taking out a mortgage to invest in a home.
Being debt smart doesn’t have to mean avoiding debt completely — after all, debt is a common part of many people’s financial lives. The key is to manage debt responsibly in a way that aligns with your goals.
Take this debt management quiz
Swipe through the carousel below and answer the questions to get a better idea of how you’re managing debt and get simple tips for making positive change. Keep track of your answers and review the results below for insight into your debt management approach.
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How do you pay your bills?
A. I always pay them on or ahead of time.
B. I often pay them late or juggle which ones to pay first.
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How are you at managing your checking account?
A. My checking account stays in the positive.
B. I overdraw my account sometimes.
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How are you at saving for future expenses?
A. I add money to my savings regularly.
B. I find it hard to save money.
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Which best describes your income situation?
A. My paycheck covers my monthly bills with a little cushion for extras and savings every pay period.
B. I need to deposit my paycheck right away because my balance is at or close to zero.
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How are your credit card balances?
A. I keep my balances below the limits and pay more than the minimum each month.
B. My credit cards are close to maxed out, or I’ve opened new ones to be able to spend more.
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What does it look like when you use credit for purchases?
A. I plan purchases and pay them off quickly, leaving room for surprise expenses.
B. I’m still paying off old purchases and sometimes delay expenses I can’t afford.
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How do you cover daily expenses?
A. My income covers everyday expenses like groceries or gas.
B. I often rely on credit cards or loans to help cover everyday costs.
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How do you feel about your debt?
A. I feel mostly confident about how I handle debt, and I stay focused on progress.
B. I often feel stressed or overwhelmed.
Dealing with debt: What this quiz can reveal about your debt management style
Managing debt with awareness and confidence
You’ve built healthy habits around the ways you borrow, spend, and pay back. You’re turning debt into a financial tool that works for you by recognizing that how you use it is what matters most. Keep doing what works and understand that confidence can grow with every on-time payment. Here’s how to keep the momentum going:
- Stay focused on your goals, whether it’s improving your credit score, saving for a big purchase, or just staying on top of your finances.
- Review your credit report and account balances regularly to track progress and stay ahead of any changes.
- Celebrate your wins (without spending more) by rewarding consistency when you pay down a debt or stick to a plan.
Debt management isn’t about perfection. It’s about awareness, progress, and being kind to yourself along the way. Keep checking in with your habits and celebrate your milestones — you’re already taking the right steps toward a more confident financial future.
Takeaways and next steps
- Debt is money that you’ve borrowed and promised to repay.
- Using debt responsibly can unlock other financial opportunities that may help you move toward your goals.
- Listing out details of your debt may help provide a sense of direction on how to manage it effectively.
- Community support and financial coaching can help set a path toward debt freedom.
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Ready to make a plan?
Take the next steps toward your future with tools and guidance built for you by Get Money Ready Coach.
