This all sounds crazy if you think about. People everyday are filing bankruptcy, suffering debt issues, and so on, yet the system requires us to establish credit at an early age in life to stay up with the Smith and Jones. 

The system is set up to get you one-way or the other. Therefore, if you are building credit for the first time makes sure that you do not overdo yourself. If you are purchasing a car, make sure you know what you are getting into to avoid future debt issues. If you are purchasing a car, consider a car that is inexpensive and economical to avoid overpaying for a fancy car that will only last for a short time. 

None of us really needs a Mercedes Benz, but some of us can afford it. If you can afford a Mercedes and know that your future is prosperous by all means, apply for the loan. On the other hand, if you see that your future is shaky and you do not have the funds to support an outrageous lifestyle, then go for the Bug it is cheaper and it will save you despair in your future.

If you want to prevent credit repair procedures, you need to keep your payments up to date. Financial emergencies may come up, so it is important that you meet minimal payments on time. If you have utilities, house payment, car payment, or other dues try to knock them out to avoid complications. If you are in debt over your head and have very little income and assets it might be wise to do nothing, Sounds insane, but the reality is when you are taking to court most of the collectors won't be able to collect a dime.