It is very important for young adults to exercise proper care when it comes to finances and debt. What happens to a person financially when they are a young adult can set the tone for their financial future and can have the potential to have some long-lasting impacts.
There are many types of financial devices a person may first acquire when they are a young adult. One of these are credit cards. In America today, many young adults use credit cards. As a young adult is starting to use a credit card, it can be important for them to be aware of what costly mistakes can be made when it comes to credit cards, so they can avoid such mistakes.
Here are some examples of bad credit card habits young adults should try to steer clear of:
- Getting too many credit cards.
- Frequently using credit cards to get cash advances.
- Regularly just making the minimum payment on their credit card account.
- Not being thoughtful when it comes to what sorts of purchases one uses a credit card for.
Making these sorts of mistakes with a credit card can sometimes lead to a young adult having far more credit card debt than they can reasonably handle.
When a young adult (whether through financial mistakes, bad circumstances or bad luck) ends up with a mountain of credit card debt, they may feel like the situation is hopeless and that they will never get themselves back on track financially. However, it is important for young adults who are facing credit card debt problems to remember that they may have debt relief options they can take advantage of. For example, bankruptcy can sometimes help those with high levels of credit card debt right their financial ship. Thus, discussing debt relief options with an attorney is something young adults who are experiencing credit card debt struggles should consider.
Source: U.S. News & World Report, “5 Bad Credit Card Habits to Break Now,” Geoff Williams, Feb. 18, 2015