Though this is a pity instance, it's not a problem unless you are awarded many scholarships. There are also debts that stem from previous credit card accounts, phone plans, and other default charges that you might had a hard time ignoring when older. Most 18-year-olds applied to credit cards in the past, and not really comprehending the negative effects they could have. Regardless of where your financial burden is coming from It's crucial to make an effort and pay it off the most efficiently you can. It is tempting to not answer calls from collection agencies. However, it is recommended to not let your thoughts wander off your head and pay the debt. If your debt is being collected, the debt is usually reduced so that you only have to pay a fraction of what the original amount was. Many companies know that customers are likely to try and avoid payment and so they'll reduce the amount to give you more chance of receiving this debt. When an agency that is collecting your debts calls to inquire about collection, consider asking questions and discussing what kind of payment plan will be arranged. In certain instances they'll let you to pay over time and make the task of figuring out an all-in lump sum less of an issue. Paying off debts late can affect your eligibility to obtain loans or even a mortgage. Some times, utilities will also require a substantial down payment when you have an unsatisfactory credit score and this can cost additional money in the long run. Even though paying off debts is never a fun thing to do, it's one that you ought to deal with sooner in the future than later. 3. Tackling Unemployment and Underemployment The past few years the majority of us have found themselves without jobs, and this can be the worst situation for people living in their 20s who wants to survive.