In the past, people relied on their credit cards to pay their monthly expenses. When this happened, plenty of consumers fell into massive amounts of debt and had difficulty repaying the loans. However, new generations of Americans are less reliant on credit cards as they are trying their hand at saving money.
Alternatives: Now, many young people are exploring other alternatives to credit cards. Some young people prefer a prepaid card while others are relying on their debit cards. In fact, many banks now offer debit cards with rewards. This is a major step in the right direction as most people love using their cards to get cash back and enjoy other perks.
Resentment: Some people do not use credit cards as they are fed up with banks and lending institutions. In its place, many young people now opt to use cash or debit cards. Not only do young consumers often resent banks, they also feel that the charges and fees are too high to justify the cost of using a credit card.
Thrifty: Without a doubt, using plastic is addictive. When going to the store with a credit card, many people overspend. When this happens, some people struggle to meet their monthly obligations. With the poor economy, some young individuals are already having a difficult time in saving money. For this reason, plenty of consumers ditch their cards and opt to spend only the cash they have on hand. This is a growing trend that many analysts and famous talking heads support as it is a great way for a consumer to avoid money problems.
Other debts: Some people want a credit card, but they cannot qualify or do not have the means to afford one. This is a bigger story than most people realize. When graduating from college, some people will have tens of thousands of dollars of student loan debt. On top of that, a consumer will often carry a car payment. This makes it difficult for a consumer to justify applying for a charge account. Not only that, when carrying so many loans, a consumer may have a depressed Fico score and will not qualify for any cards.
Young people are abandoning some old ideas. When trying to plan their future, plenty of people have decided to forgo plastic and opt for other payment methods. When doing so, individuals save money and plan better for their financial future.