Student-loan debt hit an all-time high of $1.4 trillion in the first quarter of 2019, Experian claims. Considering that this is an increase of 116 percent in the last decade, it’s safe to say that young adults are starting their lives with a crushing debt burden. But student loans aren’t the only reason they are struggling: auto loans and credit cards are also hurting their pocketbook.
When compared to other generations, millennials are much less likely to have credit card debt. However, that doesn’t mean they are completely immune to it. As a matter of fact, most of the debt millennials between the ages of 25 and 34 carry comes from credit card use.
According to WalletHub’s latest Credit Card Debt Study, Americans of all ages repaid $38.2 billion in credit card debt during the year’s first quarter, making this the fourth-largest quarterly payoff ever. But despite this large sum, WalletHub estimates that consumer credit card debt will increase $70 billion for 2019 alone. Considering that Americans now owe more than $1 trillion, millennials are in as much trouble as their older counterparts. And as experience shows us, it is precisely as we age that we start to rely more on credit cards. Will millennials act differently?
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2 comments:
So far off base. Yes, credit cards companies (banks) are making big bucks from credit card holders. However, the use of credit cards is a complex situation. During the Obama era credit cards were used for everyday necessities - food, utility bills, gas for cars etc. There were no jobs - people lost their homes. Today we have the Millennium generation - instant gratification. Got to have it now - thousand phones with service charges, Star bucks coffee, eating out or ordering chef type meals delivered, Uber. No investments, no savings. Spend money as soon as it hits the bank on vacations several times a year, movies (blows my mind how much is spent on movies). Plastic credit cards are lame. Cell phones are used to buy just about anything - so easy with no concern on how much you are spending. I don't have a solution to these problems. Me - I love to set aside money and watch it grow and I do so by making my own cup of coffee at home, cook my own meals, watch TV at home, use my coupons,etc. It's not hard.
Debt is stressful if you have a responsible conscience. Making the money in the first place is stress enough. I like to keep my money.
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