When a young Tennessee resident goes to college, he or she may begin making personal financial decisions for the first time. In many cases, students may consider opening a credit card account in order to make purchases and build their credit report. However, individuals who are not conscientious about their card use could find themselves facing credit card debt issues.
One mistake that individuals could make is to share their credit cards. They may think letting a friend borrow a card in order to make a purchase will not have a considerable impact as long as that friend pays the balance. However, the account holder is legally responsible for the balance, and if another individual does not pay, it will fall on the card holder to pay back the debt.
Because some credit cards can offer certain benefits, individuals may think that opening multiple credit card accounts will allow them to take advantage of more rewards. Opening multiple accounts could lead to debt issues if a person does not keep track of due dates. Missing a payment could lead to interest being accrued and considerable debt issues.
Credit card debt can accumulate more quickly than expected, especially if usage mistakes are made. If a Tennessee resident finds him or herself facing such debt problems, he or she may benefit from obtaining information on bankruptcy or other debt management options. Getting credit back on track may seem like an overwhelming task, but utilizing the proper channels may be able to help concerned parties.
Source: theindychannel.com, “3 student credit card mistakes”, Christine DiGangi, June 12, 2015