Managing Credit and Debt

Credit, like a knife, is neither good nor bad – it depends on the use to which it is put. Debt affords us the opportunity to benefit from things that we may not be able to purchase in the short term, such as a home. Through a mortgage, you have the opportunity to live in and enjoy your home, without being required to have the funds to purchase it immediately. Therefore mortgages have increased the opportunity for many Caribbean people to own and improve the quality of their homes. At the same time, credit has a cost – we have to pay for the privilege of using someone else’s money.

Similarly, credit cards provide security and convenience but the high-interest rates and significant penalties for late payment can make it a very poor way to access credit.

Managing credit and debt is therefore focused on the appropriate and effective use of credit and debt.

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