Credit,
Loans &
Financial Decisions
Using credit is a personal decision. Whether you choose to use a credit card, take out student loans, or avoid borrowing altogether, building healthy financial habits today can make managing money easier tomorrow.
Understand your options before making a commitment.
It's not about avoiding debt altogether. It's about developing the skills and habits to make informed financial decisions that support your life now and your future goals.
Borrowing Decision Framework
1
Ask yourself:
STOP
Avoid decisions based on stress, pressure, or impulse.
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Why do I need to borrow this money?
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Is this a need or a want?
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Can this decision wait 24-48 hours?
2
3
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Review your monthly budget.
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Know your income and expenses.
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Determine how much you can realistically repay each month.
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Consider whether your financial situation may change
Ask yourself:
If I had to start making payments today, could I realistically afford them?
PLAN
COMPARE
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Compare several borrowing options
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Look at interest rates (APR), monthly payment, total cost over time, fees, and terms.
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Ask questions until you understand the agreement.
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Do I understand what I'm agreeing to?
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Can I make these payments consistently?
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Will this help me achieve an important goal?
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Do I have a plan for repayment?
COMMIT
4
Before you sign
Before accepting a loan or opening a credit account, make sure you understand: