How age seems to be playing a part in credit card borrowing

October 31, 2007

When you look into the trend of credit card borrowing, you will soon notice that there is a big divide between the ages of consumers. You may be forgiven for thinking that the younger generation would be the biggest culprits for borrowing on their cards, but in fact it is the older generation who rely more upon their credit.

A recent study conducted by APACS has shown that around 37 percent of youngsters rely upon credit, whereas a staggering 66% of older people rely upon theirs. This could be to do with the fact that mortgages and other living expenses have increased as time has gone on. More and more people are finding that they are just not earning enough to keep them living comfortably.

Also, younger people are more likely to carry only one credit card around with them, whilst the average adult will carry at least two. The temptation seems to get to adults more than it does with the younger generation. So when store cards are offered with various discounts, often it is too tempting to turn the offer down. The younger generation are not as tempted by such offers and therefore they do not always apply for them.

However, the findings do not mean that most youngsters do not own a credit card. In fact, over 80 percent of youngsters these days have a credit card that they can use. The difference is that they simply do not use them as often as over 25’s do. So whilst they have the credit there if they need it, they seem to make wiser decisions based upon when to use it.

Overall it is fantastic news that younger people are being more responsible about their spending habits. It means that they are less likely to fall into debt and it is one step towards solving the current debt crisis.