"Avoiding The Mistakes Of Our Parents" - Only A Third Of Millennials Have A Credit Card

[DamianTV]

https://www.zerohedge.com/news/2018-...ve-credit-card

Nearly a decade has passed since Lehman Brothers collapsed, ushering in the most acute phase of the financial crisis - yet, despite all the time that has passed many millennials remain deeply distrustful of banks and borrowed money, according to a study published by Bankrate.

The study found that, while a majority of older Americans own credit cards, only 33% of adults between the ages of 18 and 29 say they have one. That is, even as the economy and job prospects have improved, millions of Americans continue to shun credit - something that is probably related to the massive pile of student loan debt, the bulk of it borne by millennials, who are defaulting in ever-greater numbers.

While that figure might seem surprisingly large, it's actually down from two years ago, when Bankrate discovered that two-thirds of young adults said they had no "major" credit cards, defined as cards issued by either American Express, Visa, MasterCard or Discover.



For millions of Americans, the agglomeration of debt that most people have accumulated by early adulthood is forcing them to put off marrying or starting a family. And roughly one-third of adult millennials are still living in their parents' basements.

Darnell Billups, 29, a U.S. Marine Corps captain stationed in Twentynine Palms, California, says when he and his wife, Natasha, married in 2011, they had a combined $40,000 in debt, including credit cards and student loans. They paid off their debts in 2013, just 2 weeks before Billups was deployed to Afghanistan for the second time.

"Our thing is, we will never have a credit card ever again," Billups says.

More than just credit cards, the couple wants to steer clear of all debt. They recently opened a photography business, Emmanuel Photography & Designs, without taking on any debt, and they plan to eventually buy a house using only cash.

"It’s been just wonderful because we don’t have to pay anyone back," he says.


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Full article on link.

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Makes me wonder if the next Financial Crisis will be blamed on Millennials for not using Credit Cards. The fact that they have taken out record volumes of Student Loan Debt may be offsetting the outcome, but the outcome is still inevitable. Our entire economy is one giant $#@!ing Ponzi Scheme, where each person gets less than the previous person and must pay more. If that cycle as a whole fails to take in more than the people just before it, the system collapses under its own weight.

[euphemia]

I'm not sure they are avoiding the mistakes of their parents. They might just be avoiding the responsibilities. Or they might not be able to get credit because of the ridiculous amount of student loan debt.

[kcchiefs6465]

I'm not sure they are avoiding the mistakes of their parents. They might just be avoiding the responsibilities. Or they might not be able to get credit because of the ridiculous amount of student loan debt.

This.

Their credit is $#@!. Who knew?

[nobody's_hero]

The other 2/3'ds have EBT cards, lol

[Ender]

So, not going into debt means avoiding responsibility?

Whodda thunk?

[euphemia]

Nothing has been required of this generation that I can see. Their parents are still paying their way.

[otherone]

Nothing has been required of this generation that I can see. Their parents are still paying their way.

this.

[DamianTV]

Nothing has been required of this generation that I can see. Their parents are still paying their way.

And for those whose parents arent paying their way, many of them survive with Student Debt.

Trouble with the Student Debt is that they are using it just like a Credit Card. Part of their loans go for education, but other parts go to pay rent for dorms and food, so either way, they are still using Debt to survive. Student Debt being much worse because it can not be dismissed with bankruptcy, just like medical. And Student Debt is at record highs, as well as 40% of Student Loan Borrowers to Default by 2023.

Not all millenials, but perhaps far too many?

[oyarde]

I only use my credit card if I have to , I would rather use Dankes .

[I<3Liberty]

I'm 25, almost a quarter millionaire (from my business and investments) and just recently got a credit card. I've always had enough money to pay cash for whatever I wanted (including college tuition.) Aside from building a credit score, I never felt a need to put things on a credit card to pay off at a later date when I have enough to pay upfront.

Most people my age have a different reason for not owning a credit card. They're in so much student loan debt from going to a super expensive school and getting a degree that offers virtually no marketable skills. A few more lived beyond their means (e.g. expensive vacations, fancy apartment, eating out all of the time, designer clothes, etc.)

[Danke]

I only use my credit card if I have to , I would rather use Dankes .

of course, it is in the nature of the Injun to be lazy and "work" to try to get others to work for them.

[oyarde]

of course, it is in the nature of the Injun to be lazy and "work" to try to get others to work for them.

It is not easy being Chief . Somebody has to be in charge though and it is always better when it is me .

[oyarde]

I'm 25, almost a quarter millionaire (from my business and investments) and just recently got a credit card. I've always had enough money to pay cash for whatever I wanted (including college tuition.) Aside from building a credit score, I never felt a need to put things on a credit card to pay off at a later date when I have enough to pay upfront.

Most people my age have a different reason for not owning a credit card. They're in so much student loan debt from going to a super expensive school and getting a degree that offers virtually no marketable skills. A few more lived beyond their means (e.g. expensive vacations, fancy apartment, eating out all of the time, designer clothes, etc.)

Thats good . I was probably 50 before I made my first million that I pd taxes on .

[heavenlyboy34]

And for those whose parents arent paying their way, many of them survive with Student Debt.

Trouble with the Student Debt is that they are using it just like a Credit Card. Part of their loans go for education, but other parts go to pay rent for dorms and food, so either way, they are still using Debt to survive. Student Debt being much worse because it can not be dismissed with bankruptcy, just like medical. And Student Debt is at record highs, as well as 40% of Student Loan Borrowers to Default by 2023.

Not all millenials, but perhaps far too many?

You can't do that. Student loans (gov'ment and private) are dispersed directly to the schools. Kids don't see a penny of it themselves. You even have to pay for textbooks out of pocket. #textbooksareascam

[Keith and stuff]

The press really fails at this stuff. I find it hard to believe that only 1/3 of 34 year old people have a credit card in the United States. So sad the press is...

[heavenlyboy34]

The other 2/3'ds have EBT cards, lol

lol...how much do EBT cash bene's add up to nowadays? I doubt enough to buy food/stuff/services commonly marketed to youngsters.

[angelatc]

"Avoiding The Mistakes Of Our Parents" - Only A Third Of Millennials Have A Credit Card

And I'd wager less have savings accounts.

[heavenlyboy34]

And I'd wager less have savings accounts.

O rlly? I didn't know getting unbanked was popular with that generation. I am impress.

[phill4paul]

If your under 40 buy long term health care insurance. A pension/retirement of $79k a year won't pay for a private/one bedroom space with incontinence care.

[nobody's_hero]

lol...how much do EBT cash bene's add up to nowadays? I doubt enough to buy food/stuff/services commonly marketed to youngsters.

Probably not. But it's fungible. I see it a lot in the ER. Young single mother of 3 comes in and can't pay anything towards her visit to see the doc, but whips out a smart phone and starts playing on snap-chat.

Priorities.

30 here—technically a millennial but I don't know what got into my fellow millennials after the 80s, and it sucks to be lumped in with them. I've got one credit card and can count on one hand the number of times it's actually gone more than a month still holding a balance and accruing interest. My credit rating is probably 5,000, lol.

I've learned most folks don't know how to budget. They don't teach that to kids anymore, and certainly don't teach people the difference between needs versus wants.

[Kilrain]

40+, never had a credit card, never will. Debit card, yes, but never credit card.

And it's more than a little creepy that your "credit score" is based on having debt, when it should be the opposite. Ability to pay (net worth) and a history of paying your bills is what should matter.

[timosman]

40+, never had a credit card, never will. Debit card, yes, but never credit card.

And it's more than a little creepy that your "credit score" is based on having debt, when it should be the opposite. Ability to pay (net worth) and a history of paying your bills is what should matter.

Credit score is a compliance measure for the middle class. The upper and bottom classes do not use it.

[angelatc]

The press really fails at this stuff. I find it hard to believe that only 1/3 of 34 year old people have a credit card in the United States. So sad the press is...

Anecdotal evidence, but it seems right to me. A lot of people lost their credit in the 2008-2014 contraction. People coming of age in those years didn't get flooded with card offers as soon as they turned 18.

[angelatc]

O rlly? I didn't know getting unbanked was popular with that generation. I am impress.

It's becoming more and more popular. Most people still have checking accounts, but a growing number of young people I see use pre-paid cards. Their paychecks are loaded directly on to those.