debt

8 ways 20-somethings can deal with debt

Conquer credit cards
Next
Slide 5 of 9
Back
Conquer credit cards

It's crucial to establish credit as soon as possible, says David Jones, president of the Association of Independent Consumer Credit Counseling Agencies in Fairfax, Va.

"The easiest way (to establish credit) is to get an auto loan," he says. "You should have a credit card, too, as long as you don't have more credit than you can repay."

Jones says young people just out of college who carry a balance should prioritize paying down debt because credit cards almost always have higher interest rates than student loans. They also should keep their credit card debt well below the card's credit limit and always make the minimum payments on time. For grads without a lengthy credit history, missing a single payment can substantially lower their credit score.

"It could be by as much as 25 points," Jones says.


Next
Slide 5 of 9
Back

 

 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
advertisement

Debt Adviser

Don't be seduced by this debt plan

Dear Debt Adviser, I have about $50,000 of debt on credit cards. My credit rating is still high. I am thinking about a debt consolidation loan. Will that adversely affect my credit rating? -- DT Dear DT, The cliche... Read more

advertisement
advertisement

Connect with us