Have you ever had so much debt that you couldn't pay your bills? If a bill collector showed up at your door, would you know what to do?
There are a lot of websites that try to teach people about money and how to deal with debt. Everyone knows that it's important to have good credit. It can hurt your chances of getting a loan in the future, and a potential employer might even look at your credit history.
Since 50% of the population has an average of $10,000 in credit card debt, it is clear that more people need to learn about money.
Credit cards are not inherently bad, but some people take advantage of the fact that they can spend on credit. When they can't pay back their debt, many people find themselves in a tough financial situation. This problem is not just in the U.S.; it affects the whole world. Dan Goldstone, the president of Norfolk Financial Corp., says it's not fair to blame credit card companies for giving cards to people who might not be able to pay back their debts. Mr. Goldstone thinks that people should be able to handle credit responsibly if they know enough about money.
The debt websites have some basic information about credit and debt for consumers. It tells you how to make a budget and stick to it, how to choose the right credit cards, and how to keep your credit score high. Look for sites that have sections just for you, like ones that help college students learn how to manage their money. "Make a budget and keep a close eye on what comes in and what goes out. The more detailed you are, the better," says Daniel Goldstone, president of Norfolk Financial Corp.
If a debt collector has contacted you, do not to panic. Collection professionals know how to help account holders who are having trouble paying their bills. As the website says, the borrower must show that they "can't pay," not just that they don't want to pay. Usually, people who work in debt collection will help people come up with a plan to pay back their debts.
