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
CREDIT CARD WEEKLY NEWSLETTER

Get advice for managing credit cards, building your credit history and improving your credit score. Delivered weekly.

Debt Adviser

Pay off $50K card debt fast?

Dear Debt Adviser, I have a debt of $50,000 from balance transfers and credit line accounts. If I were to pay just the minimum due every month (which is what I can afford now) how long will it take to clear including... Read more

advertisement
Partner Center
advertisement

Connect with us