Young adults who are in their 20s and 30s are increasingly finding themselves digging through debt at a time when they should be saving for their future, according to The Arizona Republic.
Although the struggling economy is a large reason for these individuals' money problems, the report says a lack of financial literacy is another major reason for their issues.
One young adult, Holly Huntimer, said she used credit cards without much thought while she was a student at Arizona State University. She ended up with more than $20,000 in credit card debt within a few years of graduating.
A number of consumers are unaware of the credit damage that may result from overwhelming debt. Individuals who are unable to pay their bills may not only accrue large interest penalties, but they may suffer negative marks on their credit reports, which could leave them with bad credit.
Credit reporting mistakes are another issue with which young adults may not be familiar. In some cases, a credit company may unfairly report a consumer's account with a negative mark, such as a long-term delinquency or a single missed payment. These errors can deal a heavy blow to a credit score. However, individuals may be able to defend against a questionable or inaccurate mark by investigating or filing a dispute. Often, victims of unfair or inaccurate credit reporting will work with a credit lawyer to try to resolve their situations.