Being debt free is the easiest way to manage any financial situation. Most people need to take out student loans in order to pay for school so being debt free just isn’t a possibility. Paying for College is much easier if you know what you’re doing.
Envision this circumstance, you are ready to buy a car, you are planning on financing the purchase and you assign the dealer the authority to run your credit report. He comes back with some distressing news. He cannot give you the loan because your credit report is showing that you are dead. He even asks you if you are trying to con him.
According to Bankrate.com the number one grounds for getting turned down on credit is because of a charge-off. A charge-off is often seen as a destructive signal that you have not been accountable in the past with your money and consequently you cannot be trusted in the future.