Being a young adult can be an exciting time in a Tennessee resident's life. However, there are many aspects of adulthood that may still give pause to individuals who are not well-versed in certain areas, such as finances. Parties may think it is best to avoid all credit card debt, and others may take out several lines of credit. As a result, individuals may need to educate themselves on good money practices.
First of all, avoiding credit altogether may seem like a good idea, but in the long run, it could cause significant issues. Taking out forms of credit allows an individual to build a credit history and credit score, which are needed when it comes to taking out loans for home or car ownership. By having an account and paying off that balance every month, a good credit score may be able to be established.
Though having an account or two may contribute to a well-established credit history, taking out too many lines of credit could lead to a burdening situation. Parties may not realize they are accruing so much debt through the use of multiple accounts. As a result, they may find themselves soon overwhelmed with debt they are unable to pay.
Credit card debt can have its benefits as well as its downsides. However, if individuals manage their accounts well, they may be able to maintain a good credit score and handle their credit use responsibly. If parties do find themselves with a considerable amount of debt, there are options available in Tennessee that may be able to help those residents who may feel unsteady in their current financial situations.
Source: USA Today, "Avoiding credit mistakes 20-somethings make", Jeanne Kelly, Oct. 19, 2014