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 CARDS WEEKLY NEWSLETTER
Credit cards on a table

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

Debt Adviser

Is power of attorney status risky?

Dear Debt Adviser, I am so glad you recently posted a question about an elderly mother. My mother has dementia. Eight years ago, she opened a credit card for a family member who has now declared bankruptcy. My mother only... Read more

advertisement
Partner Center
advertisement

Connect with us