Dealing with old credit card mistakes today can be crucial

On behalf of Furr & Cohen, P.A. posted in chapter 7 on Friday, March 25, 2016.

We often discuss the fact that financial problems can affect any person. It doesn’t matter where you live or what you do for a living; the fact is that events and circumstances can arise that can drain whatever money you may have and leave you in debt and concerned about your future.

However, there are ways people can try to prepare as best they can for unexpected situations. One way to do this is to avoid making financial mistakes at a young age. Unfortunately, this is much easier said than done, especially when it comes to credit cards.

Young people are especially vulnerable to making some unwise decisions with credit cards. They may not have a steady, well-paying job; they may have expenses they see as necessary that they can’t afford; they often don’t have the life experience to understand the lasting impact that financial decisions can have.

Because of this, many millennials make some expensive mistakes with their credit card that can stain their credit and financial health well into the future.

As this recent article in the Washington Post notes, there are five reasons why young people are at an especially high risk of making costly credit decisions.

  • They don’t know how much they can spend
  • They don’t know there is interest rate charged
  • They think that late payments are no big deal
  • They don’t check their credit report
  • They don’t understand their options to seek better deals and rates

This lack of knowledge and experience with credit cards can lead to some very expensive lessons later in life. Mounting penalties and interest rates can make it impossible to pay down debt, even years after the credit initially accumulated. This can make it difficult to get a house, buy a car or get any type of loan.

Unfortunately, there is no way to go back in time and erase mistakes that were made many years ago. However, there are ways to deal with the repercussions today so that you can make a fresh financial start. Speaking with an attorney to examine your debt relief options can be the first step toward a better future.