In the midst of learning how to correctly handle credit, young adults sometimes find themselves going downhill.
"The most important thing to know is your credit score," said Ronald Spahr, professor and chair of the Department of Finance, Insurance and Real Estate.
Maintaining a good credit score starts with good habits from the moment credit is established.
"The trick is to keep your credit score high by making at least the minimum payments (on all bills)," said Spahr. "It's a matter of self-discipline."
Staci Parram, sophomore biology major, does not have any credit cards and has no plans to get one.
"Even though I may go hungry 'til payday, I just can't do credit cards," Parram said.
For the time being, Parram does not have to worry about paying for anything but her cell phone. But like many students she has loans to worry about once she graduates.
"I haven't thought about those loans since I got them, but I guess when the time comes, I will take it one step at a time," she said.
"I am paying my bills on time, paying more than the minimum and trying not to get more credit cards," said Oliver Everett, senior English and political science major, about how he is combating debt.
Financial security is possible, but many people, especially students, still seek financial advice to help combat debt.
Dave Ramsey, personal money management expert, national radio personality and best-selling author, has helped millions of people get rid of debt and take back control of their money.
While many people try to pay off their largest debt first and are often told to do so to avoid paying too much in interest rates, Beth Tallent, director of public relations and spokesperson for Dave Ramsey, said to ignore interest rates and focus on the amount owed.
"Make a list of your debt from smallest to largest and then start with the smallest, " she said. "Starting with the smallest helps pay off debt faster because it keeps you motivated."
According to Tallent, when people try to pay off debt starting with their largest bill they will get discouraged because it takes longer to see results.
This method is what Ramsey calls "The Debt Snowball," which is paying off debt starting with the smallest bill and then, once it is paid off, applying its payment to the next smallest bill on top of its minimum balance and so on.
The system works by "putting attention on the smallest debt so you can get really fired up and knock 'em out," said Tallent.
