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Subject:  Young Americans Are Shunning Credit Cards Date:  3/19/2016  5:37 PM
Author:  InconclusiveFool Number:  310352 of 312906

Learning to live without credit card debt is a good thing and this is an encouraging statistic:

"Credit card usage is fairly robust in the U.S., with 33% of U.S. adults owning at least one or two credit cards, and another 34% owning three or more cards as of 2014, according to But there's one key demographic that's engineering a slide in credit card use: Millennials. And this trend provides a cautionary tale about future credit card usage.

According to, 49.7% of young Americans between the ages of 18-and-34, the so-called millennial generation, don't own a credit card. Worse for the card industry, 35% of Americans aged 25 to 34 (an age group that should start earning some decent money) "has never applied for a credit card."

One big factor is the front row seat younger consumers had for the Great Recession, watching their parents and grandparents struggle with debt. Another is their own wrestling match with enormous debts of their own making. "Millennials are avoiding credit cards because they belong to a generation that is more aware of the dangers of debt, especially credit card debt and student loan debt," notes Alex Matjanec, CEO of MyBankTracker. "Their sensitivity to debt was heightened due to growing up during the Great Recession and the increased susceptibility to financially-focused media -- thanks to the Internet and social media."
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