Comments on: 3 Credit Mistakes Young People Make (and How to Avoid Those Mistakes) https://www.goodfinancialcents.com/3-credit-mistakes-young-people-make-and-how-to-avoid-those-mistakes/ Mon, 13 Nov 2023 04:00:53 +0000 hourly 1 https://wordpress.org/?v=6.6.1 By: Jeff Rose https://www.goodfinancialcents.com/3-credit-mistakes-young-people-make-and-how-to-avoid-those-mistakes/#comment-179738 Tue, 12 Sep 2017 19:11:22 +0000 http://gfc-live.flywheelsites.com/?p=27876#comment-179738 In reply to Margie.

Hi Margie – Unfortunately, her options are limited. Any solutions – short of her (or you) paying the debt off completely – will almost certainly hurt her credit, limiting future borrowing. I’d contact the lender and let them know what’s going on. They may offer a reduced payment, or they might allow you to settle the debt for less than the full amount owed. Failing that, I’d discuss it with an attorney and see what your options are. Since it’s only a single debt, she probably won’t be able to file for bankruptcy.

If her credit score is still good, she can try to do a balance transfer to another card, with a zero interest rate offer. That will buy some time to get the balance paid down, but it won’t make the problem go away.

Please avoid credit repair scams. They’ll only make her credit worse, and still not payoff the card.

]]> By: Margie https://www.goodfinancialcents.com/3-credit-mistakes-young-people-make-and-how-to-avoid-those-mistakes/#comment-179724 Tue, 12 Sep 2017 17:11:00 +0000 http://gfc-live.flywheelsites.com/?p=27876#comment-179724 My 26 year old daughter has gotten in over her head with her first credit card; limits were increased and now maxed out at 9000.00. She cannot afford this and is barely making ends met. I am already helping with her student loans. Any advise?

]]> By: Aaron https://www.goodfinancialcents.com/3-credit-mistakes-young-people-make-and-how-to-avoid-those-mistakes/#comment-139287 Mon, 28 Mar 2016 01:47:17 +0000 http://gfc-live.flywheelsites.com/?p=27876#comment-139287 These are all great suggestions Jeff. Payment history is the biggest factor when it comes to calculating your credit score, not paying your bills on time can have a huge, negative impact.

A lot of people don’t realize this, but when your credit score is low, it actually can cost you money – you end up with a much higher interest rate when you go to buy a home or a car & need a loan. It can also keep you from getting certain types of jobs!

Making these mistakes can cause some serious long term headaches!

]]> By: Aaron https://www.goodfinancialcents.com/3-credit-mistakes-young-people-make-and-how-to-avoid-those-mistakes/#comment-139286 Mon, 28 Mar 2016 01:40:59 +0000 http://gfc-live.flywheelsites.com/?p=27876#comment-139286 In reply to Natalie @ Financegirl.

Hey Natalie – congrats on not getting sucked into credit card debt!

Out of curiosity, do you try to build your credit score in other ways?

]]> By: Catherine Alford https://www.goodfinancialcents.com/3-credit-mistakes-young-people-make-and-how-to-avoid-those-mistakes/#comment-138332 Wed, 16 Mar 2016 18:00:45 +0000 http://gfc-live.flywheelsites.com/?p=27876#comment-138332 My husband and I got into some credit card debt in our early 20’s. After we got it paid off though we decided we didn’t want to end up there again. Now we use our credit cards wisely.

]]> By: Ramona https://www.goodfinancialcents.com/3-credit-mistakes-young-people-make-and-how-to-avoid-those-mistakes/#comment-138161 Mon, 14 Mar 2016 21:54:08 +0000 http://gfc-live.flywheelsites.com/?p=27876#comment-138161 I was lucky enough to pay off my debt in 4 years and not take on any new loans ever since. It’s really sad to see how a mistake can actually ruin your finances for years to come.

]]> By: Derek @ MoneyAhoy https://www.goodfinancialcents.com/3-credit-mistakes-young-people-make-and-how-to-avoid-those-mistakes/#comment-138137 Mon, 14 Mar 2016 17:04:33 +0000 http://gfc-live.flywheelsites.com/?p=27876#comment-138137 I was lucky in that I was able to avoid credit cards for most of my college years. I developed good habits with them and have always paid them off on time. I think folks that get trapped into maxing out their cards and find themselves unable to make payments are basically trapped. I think we need more protection from these types of loose money practices because many do not really understand what they are getting themselves into!

]]> By: Natalie @ Financegirl https://www.goodfinancialcents.com/3-credit-mistakes-young-people-make-and-how-to-avoid-those-mistakes/#comment-138121 Mon, 14 Mar 2016 12:21:19 +0000 http://gfc-live.flywheelsites.com/?p=27876#comment-138121 I have managed to avoid having a credit card altogether – yes, I’ve never had one! This is such a blessing for me because I’m a spender at heart. With a debit card, I’m never tempted to spend more than I have.

]]>