Students and those taking gap years have been warned to avoid getting into bad habits and making simple errors when dealing with credit card debt, as …
Students and those taking gap years have been warned to avoid getting into bad habits and making simple errors when dealing with credit card debt, as the consequences can last for a long time.
Vice president of Credit Confidential Paul Lewis stated: "It's very easy for someone not used to having a credit card to forget to pay for a couple of months, while very rapidly black marks are being added to their credit history. That can be very difficult to undo further down the line."
It is important to adopt "sensible, responsible financial habits", which include acting to "make certain" monthly minimum payments or more are made on cards.
Mr Lewis said young people can easily get into problems that can make it hard to get credit in the future, sometimes not of their own making.
He warned students that they need to be "really careful" over who they share a house with while away studying as some individuals may get into bad credit situations and their failure can taint people who share the same address by association.
Those who are setting off on a gap year or entering student life may wish to ensure they seek good advice if they do run into debt problems, as this could help solve the problem as soon as possible and limit any damage to credit ratings.
A survey carried out earlier this month by Standard Life revealed that the average UK adult pays £317 a month on credit card repayments, or £3,804 a year.
Posted by Paul Thacker