An incredible 63% of young people aged, 18 to 29 don’t have and don’t want a credit card, according to a new study. That means 6 out of 10 millennials hate credit cards.
The global recession definitely played a significant role in young people’s aversion to credit cards, but a more direct reason is that they seem absolutely content with a debit card, a finance option which has now eaten into the credit card market share.
Millennials also find frustrating the rigid application and payment structure of credit card, as well as its limited use of smart technology that has become a part of everyday living today.
Using a personal loan calculator to help you decide on how much you can afford to borrow to finance your purchase is a smart way to avoid the financial reckless that often goes with owning and using a credit card.
Here are other payment options are available for millennials who are averse to credit cards:
There is a certain peace of mind and joy that comes with knowing that the money that is debited electronically from your card is straight from your own bank account. It is an easy, convenient and hassle-free payment method.
Unlike some new innovations that require the card user to have a checking account linked to an app or program, using a debit card is flexible and allows for a simple and track-able debit directly linked to your bank account.
The traditional payment method of cash is ever reliable, even in this advanced age of the millennials.
Many financial experts still recommend using cash rather than credit card for financing your expenses to avoid getting into a debt bubble. One way to use cash smartly is to develop a ‘cash envelope’ system where you keep cash in separate envelopes for different expenses on a weekly or monthly basis.
With this, you are able to cultivate and maintain financial discipline with your spending, as you will have to wait for the next determined time cycle (weekly or monthly) if you overshoot your budget and run out of cash.
Using cash, millennials can operate the simple, traditional deposit and withdrawals with their bank accounts and better monitor their inflow and outflow. Another great cash alternative is a cash card to store and use your money.
New, smarter credit options
A newer and more innovative funding and payment option millennials can use is the alternative credit.
It is still credit but functions a bit differently and more smartly. Alternative credits attempts to solve the traditional drawbacks of a credit card by integrating more flexible and advanced technology features that leverage on the brand value of the issuing company.
For example, alternative cards like PayPal credit allows for easier online payments and processing payments via technology simpler.
According to research, millennials are more likely (50%) to use brand products from innovative tech companies. This is expected as millennials are naturally tech-inclined and 7 out of 10 of will trust companies that are technology based.