What does credit management involve?

Credit management primarily involves assessing and managing an individual's credit responsibilities, which includes calculating debt levels and creating a structured payoff plan. This process is critical for maintaining a good credit score, which in turn makes it easier to obtain loans and other credit in the future. By calculating outstanding debts, individuals can understand their financial obligations and develop strategies for paying them off efficiently, such as prioritizing high-interest debt or consolidating loans.

In contrast, activities like maximizing credit card rewards, monitoring stock prices, or reducing investment risks focus on different financial areas that do not directly relate to managing personal credit and debt. Thus, credit management is more specifically centered on how to handle and improve one's credit situation.