By [http://ezinearticles.com/?expert=Milos_Pesic]Milos Pesic
Most of the time, the first major purchase a person makes when they get their first job is a car. They may well still be living with their parents, but because they have a paycheck coming in on a regular basis, they can get a loan to buy a car or truck.
Welcome to the world of consumer debt! That car loan may be the first time that they have ever been obligated to pay a monthly installment for an item that they are using before it has been paid for in full. It's a heady experience. It really represents their ascension into the adult world like nothing else can or ever will.
That first loan is much like opening Pandora's Box. The first thing that they will learn is that there is such a thing as interest. It may even shock a young person to find out that they aren't just going to pay the sticker price of the car or truck out over a period of months or years but that they will also be paying the bank a sum each and every month called interest. I hope they passed fifth-grade math.
The next shocking bit of information is that they will have to carry full coverage insurance on their car or truck for the duration of the loan. They soon find out that they will first have to make a substantial initial payment to obtain this full coverage insurance policy, and that they will also be obligated to make monthly installment payments to keep in effect.
Sometimes mom and dad will step in and help the virgin consumer get started, but it isn't always the big favor it appears to be. Learning about debt and how to manage it wisely is a vital step to be made when becoming a taxpaying member of adult society.
Milos Pesic is a professional Debt Management consultant who runs a highly popular and comprehensive Debt Consolidation web site. For more articles and resources on debt management, debt consolidation programs, free debt counseling and much more visit his site at:
=> http://debt.need-to-know.net/
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