Though there are varying age ranges, millennials are typically defined as those individuals in Florida and anywhere around the country who were born from roughly 1980 to 2000. Trend watchers often cite how members of this demographic are having a profound effect on many businesses. People in this age group are not as likely to read hard copies of newspapers or magazine or shop in actual stores. Also, millennials are not as likely to incur credit card debt as some members of other generations.
According to a survey conducted by an online financial website, most older consumers have at least one credit card. However, only one third of young adults aged 18 to 24 use credit cards. The type of card they use is different as well. That age group is more likely to use a prepaid card or a debit card.
This trend would not be favorable to the credit card industry. Companies like Visa or MasterCard rely on fees from credit card transactions, which are higher than those of transactions with debit cards. Experts believe that the possibility of incurring a large amount of debt is frightening to young adults who witnessed the financial downturn a decade ago.
Many millennials also have substantial student loan debt and do not wish to take on additional debt with credit cards. However, as they age, industry analysts see that some will begin to use credit cards more frequently as their financial situations change. Spending habits evolve over time and programs such as reward points or cash back become more attractive.
No matter what demographic an individual is in, a large amount of credit card debt can be unsettling. If someone would like to reduce or eliminate their credit card balances, a Florida bankruptcy attorney can provide much-needed guidance. An experienced lawyer can work with clients to help get their finances back on track.
Source: fortune.com, “Debt-Conscious Millennials Ditch Credit Cards, Threaten Industry“, Feb. 27, 2018