"The credit reality for young adults will differ greatly from that of their parents," explains Laura Fisher, director of the ABA Education Foundation. "But while the landscape has changed, the journey is still the same; understanding how to use credit responsibly is the path to success."
While I understand that we live in a world today that worships at the altar of the great FICO® score, I believe we do a disservice to people by encouraging them to go into debt and stay in debt to build a credit score.
I think it would be better if we encouraged people to pay off debt as quickly as possible and build up their savings in order to weather our current economic climate.
The United States would be in a better financial position if people ran their lives with minimum to zero amounts of consumer debt, had money in savings, and had mortgage payments that only consume 25% of their income.
We would also benefit in this country if American businesses used different financial criteria for rating clients and customers than just a credit score based on debt levels.
Get smart about credit, today - avoid it at all costs!