Do Credit-Shy Millennials Have It Right?
Though credit card abuse is hardy a new trend in the U.S., it's one that seems to be growing increasingly out of control. Earlier this year, outstanding credit card debt reached an all-time high, totaling over $1 trillion.
But even though it might seem as if most Americans are going out and charging up a storm, data tells us that millennials want no part of it. In fact, younger adults are among the least likely to carry credit card debt, and, as such, are doing their part to preserve not just their credit scores, but their hard-earned money.
The percentage of adults under 35 who have credit card debt has fallen to its lowest level since 1989, according to the Federal Reserve. In fact, a 2014 Bankrate survey found that 63% of millennials aged 18 to 29 don't have a credit card. But while it's one thing to avoid racking up costly debt, it's another to shun credit cards completely. And the latter is a move that could backfire for millennials later in life.
Source: Fool.com
