Learners Quest
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Debt can happen to people of all ages, as we will see in this article. However, debt tends to accumulate more quickly for young people, giving them less time to pay it off. Debt can also be detrimental to credit scores and other aspects of a person's financial future if not managed properly.
Therefore, is there an age restriction on the accumulation of debt? The answer is a little more complicated than yes or no—or even 18 or not 18. This is due to the fact that under federal law, there is no specific age limit on the acquisition of credit. There is also no federal law that prohibits a minor from incurring debt.
However, when people assume debt, it's usually a home or car loan. When it comes to financing for these items, state laws may dictate which parties can apply for them and the interest rates they must pay. However, it is important to keep in mind that applying for financing does not necessarily mean your application will be approved. In fact, only about 60 percent of all applications are accepted by lenders according to Money Under 30 . Again this can change state to state so make sure you check with your lender whether you are considered a minor and whether you are approved.
Therefore, is there an age restriction on the accumulation of debt? The answer is a little more complicated than yes or no—or even 18 or not 18. This is due to the fact that under federal law, there is no specific age limit on the acquisition of credit. There is also no federal law that prohibits a minor from incurring debt.
However, when people assume debt, it's usually a home or car loan. When it comes to financing for these items, state laws may dictate which parties can apply for them and the interest rates they must pay. However, it is important to keep in mind that applying for financing does not necessarily mean your application will be approved. In fact, only about 60 percent of all applications are accepted by lenders according to Money Under 30 . Again this can change state to state so make sure you check with your lender whether you are considered a minor and whether you are approved.