One of the best ways to stay out of debt is never to be in it in the first place, but that’s not always an option. Credit cards can be used to build up your credit profile, helping you obtain loans and other benefits; however, if financial trouble does result when these cards are used, it can seem like a terrible burden. Fortunately, there are many ways to work through it. From negotiating settlements with credit companies to bankruptcy plans, no one has to suffer through excessive debt, and your attorney can help you emerge from debt with a clean financial start.
Some people are deciding to stay out of credit debt completely, though, by shunning credit cards. Who are these individuals? Primarily Millennials. According to the statistics, around 64 percent of those between the ages of 16 and 36 don’t have a credit card to their name. Those 50 or older are about twice as likely to have a credit card.
Why are they stepping away from credit? One reason could be because of how the recession affected their family, friends or even them in the past. Debts were high during the recession, and that meant many people struggled.
Another reason some people are avoiding credit cards, even though there are benefits like building up your credit, is because they think they’re not ready. Some people have thousands of dollars in student loans, for example, and they may not want to take on more debt by taking out a credit card. These individuals may also be less educated about credit scores, as shown in a survey taken by the Consumer Federation of America. Without understanding why credit scores are important, they simply may not see the need for a credit card.
Source: Money, “2 Out of 3 Millennials Don’t Own a Credit Card,” Megan Leonhardt, June 13, 2016