If there was only a single bit of financial literacy advice we could offer the young adult just beginning the trek through life, it would be this, “Stay the hell off the collection agency list!” And what is the best way to implement this advice? It’s easy – pay your bills on time. The fact is legitimate bills are money owed by you to someone else. If you incurred them, you should pay them. If you don’t pay them, believe us, a collection agent will follow you to the ends of the earth until you either make good or arrange to have him killed.
They do not give up easily. They’ll call you in the morning and in the evening. They’ll call your friends and parents, even senile old Grandma Betty, who will be glad to give them your cell phone number you made her promise to never share.
Collection agency grief is an aggravation you do not want in your life.
If you don’t have the income or resources to make new car or house payments, or worse, electronic junk payments bought on a department store credit card, then don’t make the purchase! Better to live in a hovel and eat Ramen Noodles than be dogged by an aggressive bill collector. Yes, you can file bankruptcy but that should be an absolute last resort. Ever tried to get a home loan with a bankruptcy on your record? It’s not easy.
In the midst of acquiring your investment education, don’t forget to pay your bills.
The Young Wealth Team