Sunday, July 20, 2008


Ignorance. It's plain and simple that bad credit comes from not being educated on credit and fully aware of how it affects your life. Many people today are living in apartments or with someone because their credit is not good enough to own a home. Did you know that half of U.S. adults received a failing grade for their knowledge of basic economic concepts? I grew up in a home where bills were paid on time and no one had bad credit. So what happened to me? I believe it starts in childhood, teaching children about bills and money and saving. In addition, giving allowances so that kids could begin understanding the concept of balancing and saving . As soon as I was handed money, I immediately spent it. I never saved a penny as a child and those bad money habits followed me into adulthood. I was financially irresponsible when it came to spending and saving. I paid a bill when I felt like it, not understanding the repercussions of not paying it on time. At the age of nineteen, I had become so consumed by debt, I contemplated bankruptcy. As I said in my previous post, I believe there should be a mandatory Credit 101 course for high school students. Rather, it shouldn't be an option but a required course. A startling stastistic: The number of 18 to 24-year-olds declaring bankruptcy has increased 96% in 10 years. Why do you think that is? Because they aren't being taught the basics of credit and the importance of it throughout life. Credit is so important that even jobs are running credit checks. I guess they figure if you aren't responsible in your personal life, how can you be a responsible employee. Just some food for thought. Even if you weren't educated a a child, it's never too late to start. It becomes important when purchasing homes, cars or other items. It definitely starts with taking control of your finances.

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