For many young people today, the dream of a white-picket fence and first real home seems to be more just that, a dream, and farther away from a realistic goal. The economy, although improving, is nowhere near the booming '90s and early 2000s, when as far as economic growth was concerned, it seemed like the sky was the limit.
Stable jobs are harder to come by for post-recession college graduates, and many choose to return to school again, adding to their debt burden, to gain more skills and a better shot at a good career. Oftentimes this means relying on credit to get by, assuming it can be paid off years later.
Living on credit, however, quickly turns into a dangerous game. It can seem like a double-edged sword: You need to use credit to build your credit score - crucial to getting qualified for your first mortgage - but you don't want to spend more than you can reasonably pay off in the foreseeable future. Ten years ago, lots of college grads wouldn't think twice about swiping a credit card - they could count on plentiful jobs and steady raises to afford the expense. Graduates today know that may not be the case.
It's smart to have a plan of attack before getting yourself into a spending hole you can't dig out of - a mistake that could take years, sometimes decades, to recover from. Whether you have a goal of owning your first home or simply want to manage your debt and finances responsibly, here are 4 tips to keep in mind.
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