New information is showing that Generation Y, also known as the millennials, are increasingly avoiding credit card debt and other types of bad debt. Generation Y appears to be reacting to the recent market crashes and economic recession by living frugally and within their means, and this means that this upcoming generation may represent less risk in general. However, it has yet to be seen what the economic effects of this frugal spending might be.
Those in Generation Y saw the generation immediately prior to them become ruined with credit card debt, student loans and high mortgages. This means that Generation Y is highly skeptical of credit card debt, but also that they are very worried about their future. Many in Generation Y have grown up during uncertain times and are never certain that they will have a job in six months. This means that they are required to live frugally because they don’t know what tomorrow brings, and whether this is a sustainable situation will remain to be seen. It is possible that once the economy rebounds credit cards will be embraced once again.
For more information about how generation Y’s reluctance to use credit cards may represent less risk contact Gant Insurance.