Debt management

Debt management is when you try to make sure you don't owe too much money to other people. Sometimes grown-ups buy things they can't afford right away and they use a thing called "credit" to borrow money. They promise to pay it back later, but if they don't have a plan for how to do that, they might end up owing a lot more than they can handle. That's where debt management comes in.

It's like if you were given a big bunch of toys to play with, but you only had a small toy box to keep them in. You would have to decide which toys were most important to you and which ones you could give back to someone else or donate to charity. When grown-ups do debt management, they look at all the things they owe money for, like a car or a house or a credit card bill, and they make a plan for how to pay them off without getting overwhelmed.

Some ways grown-ups can do debt management are by making a budget, which is a plan for how much money they will make and spend each month. They can also try to negotiate with the people they owe money to, to see if they can get a lower interest rate or a payment plan that works better for them. And they can try to avoid borrowing more money until they have paid off what they owe.

Debt management can be hard work, but it's important to be responsible with money so that you can have a happy and secure future.