Source: Newscast / Getty
A new report says millennials are all about the debit card and I have to say, there may actually be some truth to the claim. We know building credit is essential BUT we’re also painstakingly aware of how sticky credit cards can get if we’re not careful, a sentiment reflected in a new Bloomberg report about “credit-averse” millennials.
“Spending on Visa Inc. debit cards — the favored plastic of the younger set — continues to grow at a faster clip than on credit. Spending on the firm’s debit cards jumped 16.3 percent in this year’s first three months, helping the firm raise its financial outlook for 2018. Credit-card spending rose 13.7 percent,” Bloomberg reports this week.
As for why debit card spending is growing at a faster rate, the site says there are a couple of factors to consider. “Younger consumers prefer to pay with debit cards or cash after cultivating an aversion to credit while coming of age during the financial crisis. They also don’t typically qualify for top credit cards until becoming older. Visa, the world’s largest payment network, generates more-lucrative fees from credit-card use yet has a larger debit business than rival Mastercard Inc.,” Bloomberg states.
What do you think? As a millennial, are you more likely to bust out your credit or debit card and why? Hit Global Grind up on Twitter and let me know. Plus, a bunch of photos of ol’ Marty Mar and all his celebrity friends over the years in the gallery below—because, millennials.
