debt collection - managing debt in your 20's

For most, an exciting decade.   You are probably working and making real money for the first time in your life  You have money, but likely not responsibility.  There’s money in your pockets, but not a life experience of the discipline on how to manage it.

Your biggest expense, if you went, is college.  Congratulations in addition to your first money, the first debt is now pressing down.

In all likelihood.. there’s a shiny set of wheels, better known as your first car.

Finance Cautions

Watch out for student loans.  These are debts you will cary for ever, not usually dischargeable even in bankruptcy.  Do all you can to save money on college expenses, explore every scholarship, shop interest rates.  Keep a part time job, live off campus, whatever it takes.   Many leave college with 8 figure debt, in an uncertain job market.

Start good habits early.  Start now when your obligations and responsibilities are small to put 15% of your income into some form of savings or investment.  This is a habit that can follow you for life.  Starting saving early, and relying on compounding interest can make you wealthy, regardless of your career path.

Go easy on your first car – the new cars can loose 20% and more in value the day you drive them off the lot.

There will be companies working very hard to get you to sign up for credit.  They want you to sign up because you will end up indebted to them for life.  Resist the urge to splurge.  Shop your credit for low interest rates and fees.  Now is not the time to play now, and pay later, because you have a lot of later left, and interest fees will continue to grow.

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