{"id":586863,"date":"2023-08-13T20:20:38","date_gmt":"2023-08-13T17:20:38","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/young-adults-are-more-reliant-on-credit-cards-than-ever-before-video\/"},"modified":"2023-08-13T20:20:38","modified_gmt":"2023-08-13T17:20:38","slug":"young-adults-are-more-reliant-on-credit-cards-than-ever-before-video","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/young-adults-are-more-reliant-on-credit-cards-than-ever-before-video\/","title":{"rendered":"#Young adults are more reliant on credit cards than ever before [Video]"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a40213896283\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a40213896283\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/young-adults-are-more-reliant-on-credit-cards-than-ever-before-video\/#%E2%80%98Millennials_should_be_especially_aware\" >&#8216;Millennials should be especially aware&#8217;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/young-adults-are-more-reliant-on-credit-cards-than-ever-before-video\/#%E2%80%98Age_into_financial_independence\" >&#8216;Age into financial independence&#8217;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/young-adults-are-more-reliant-on-credit-cards-than-ever-before-video\/#Student_loan_forbearance_ends\" >Student loan forbearance ends<\/a><\/li><\/ul><\/nav><\/div>\n<div>The countdown until the student loan payment pause is lifted in October is ticking, and some experts worry that once payments resume, many younger Americans will find it harder to dig themselves out of credit card debt.<\/p>\n<p>About 53% of millennials and 41% of Gen Z respondents said they were more reliant on credit cards than ever before this summer, according to a recent <a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:1;pos:1\" href=\"https:\/\/www.quicken.com\/press\/americans-sinking-money-in-credit-cards-they-cant-pay\" data-ylk=\"slk:study;cpos:1;pos:1;elm:context_link;itc:0\" class=\"link rapid-noclick-resp\">study<\/a> by Quicken Inc. The survey, which consisted of 1,002 credit cardholders in June, found that 38% were using credit cards to make ends meet.<\/p>\n<p>Another 35% of Americans said they believed they would max out at least one of their credit cards by the end of the year, the study found, regardless of their income level.<\/p>\n<p>The results are concerning, one expert said, especially with credit card interest rates hovering over 20%. The end of the pandemic-era student loan forbearance this fall could worsen the financial stability of younger adults.<\/p>\n<p>\u201cI\u2019m troubled by the compounding problems facing this group,&#8221; said Eric Dunn, CEO of Quicken. &#8220;Many of them are living paycheck to paycheck and relying on credit cards they may not be able to afford.\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%98Millennials_should_be_especially_aware\"><\/span><strong>&#8216;Millennials should be especially aware&#8217;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The number of credit card accounts grew by 5.48 million to 578.35 million in the second quarter, the Federal Reserve Bank of New York revealed this week. Outstanding <a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:2;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/credit-card-debt-hits-a-record-high-at-1-trillion-ny-fed-says-154553638.html\" data-ylk=\"slk:credit balances hit $1.03 trillion;cpos:2;pos:1;elm:context_link;itc:0;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link rapid-noclick-resp yahoo-link\">credit balances hit $1.03 trillion<\/a>, up 4.6% from the previous quarter, the highest level recorded in the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/watch-movies-tv-seriess\/\" data-internallinksmanager029f6b8e52c=\"8\" title=\"Watch Movies &amp; TV Series\" target=\"_blank\" rel=\"noopener\">series<\/a>.<\/p>\n<p>Just over a week ago, data from the Federal Reserve Bank of St. Louis also showed credit debt had <a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:3;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/americans-owe-a-record-1-trillion-in-credit-card-debt-205759223.html\" data-ylk=\"slk:topped $1 trillion;cpos:3;pos:1;elm:context_link;itc:0;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link rapid-noclick-resp yahoo-link\">topped $1 trillion<\/a>.<\/p>\n<p>\u201cOne trillion dollars in credit card debt is staggering,\u201d LendingTree chief credit analyst Matt Schulz said in a statement. \u201cUnfortunately, it is likely only going to keep growing from here.\u201d<\/p>\n<p>What\u2019s troubling is how compared with other age groups, the youngest Americans are already having a harder time making payments on time.<\/p>\n<p>For instance, 18- to 29-year-olds had the highest credit card delinquency rates in the second quarter, according to the NY Fed. At least 8.8% were 90-plus days behind on payments, up from 8.5% the previous quarter. This was followed by 30- to 39-year-olds who had a delinquency rate of 7%. The past-due rate for those 40 and over was below 5%.<\/p>\n<p>The results mirrored what Quicken researchers found in June.<\/p>\n<p>Almost half (49%) of millennials and 55% of those earning under $50,000 a year said they \u201cdidn\u2019t see an end in sight,\u201d as they lived paycheck to paycheck. Another 25% of those surveyed said they would need to cut back on spending because they were \u201ccurrently buried in credit card debt,\u201d Quicken found.<\/p>\n<p>\u201cCredit card interest rates are currently in double digits, and not uncommonly 20% or more, which is causing many young people to face a rising debt load,\u201d Dunn told Yahoo Finance. \u201cMillennials should be especially aware of this, as over half of them have significant credit card debt.\u201d<\/p>\n<figure class=\"caas-figure\">\n<div class=\"caas-figure-with-pb\" style=\"max-height: 841px\">\n<div>\n<div class=\"caas-img-container caas-img-loader\" style=\"padding-bottom:68%\"><img decoding=\"async\" class=\"caas-img caas-lazy has-preview\" alt=\"FILE - In this May 9, 2012 file photo, a Visa credit card is tendered at opening of the Superdry store in New York's Times Square. If you do not have a credit history it becomes more difficult to obtain a credit card, a loan or even an apartment. (AP Photo\/Richard Drew, File)\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/GoRaHIldlM4O6K9UKxp4Aw--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyNDI7aD04NDE-\/https:\/\/media.zenfs.com\/en\/aol_yahoo_finance_433\/832d265a3886f658baa07941b71603de\"><noscript><img decoding=\"async\" alt=\"FILE - In this May 9, 2012 file photo, a Visa credit card is tendered at opening of the Superdry store in New York's Times Square. If you do not have a credit history it becomes more difficult to obtain a credit card, a loan or even an apartment. (AP Photo\/Richard Drew, File)\" src=\"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/GoRaHIldlM4O6K9UKxp4Aw--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyNDI7aD04NDE-\/https:\/\/media.zenfs.com\/en\/aol_yahoo_finance_433\/832d265a3886f658baa07941b71603de\" class=\"caas-img\"><\/noscript><\/div>\n<\/div>\n<\/div>\n<p><figcaption class=\"caption-collapse\">A Visa credit card is tendered at opening of the Superdry store in New York&#8217;s Times Square. (Richard Drew\/AP Photo, File)<\/figcaption><\/p>\n<\/figure>\n<h2><span class=\"ez-toc-section\" id=\"%E2%80%98Age_into_financial_independence\"><\/span><strong>&#8216;Age into financial independence&#8217;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Rising interest rates and stricter lending standards didn\u2019t stop some Gen Z consumers from <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>lying for credit cards this year \u2013 and piling on debt.<\/p>\n<p>According to a separate <a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:4;pos:1\" href=\"https:\/\/newsroom.transunion.com\/q2-2023-ciir\/\" data-ylk=\"slk:study from TransUnion;cpos:4;pos:1;elm:context_link;itc:0\" class=\"link rapid-noclick-resp\">study from TransUnion<\/a>, Gen Z credit card balances grew to $55 billion in the second quarter, up from $36 billion a year prior. That represents a 51.9% year-over-year change. Overall, credit card balances grew to $963 billion in the second quarter.<\/p>\n<p>Additionally, half of Gen Z borrowers planned to apply for new credit or refinance existing credit within the next year. That compares to 32% of the entire population, TransUnion noted. A year ago, only 41% of Gen Zers said they planned on applying for credit or refinance \u2014 a big difference.<\/p>\n<p>One factor that\u2019s pulling Americans to rely on credit card debt is inflation, according to Michele Raneri, vice president of US research and consulting at TransUnion.<\/p>\n<p>\u201cAs members of the Gen Z demographic age into financial independence, and as credit [is] being made available to them for the first time, many are taking advantage of that newly available credit.\u201d Raneri told Yahoo Finance. \u201cInflation and a higher cost of living likely have at least some of them turning to credit products as a way to manage their monthly budgets.&#8221;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Student_loan_forbearance_ends\"><\/span><strong>Student loan forbearance ends<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>With Biden\u2019s student loan forbearance program set to end in October, some borrowers are feeling worried about how they\u2019ll make ends meet.<\/p>\n<p>Approximately 46% of borrowers said they weren\u2019t financially prepared to resume payments, according to a <a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:5;pos:1\" href=\"https:\/\/money.usnews.com\/loans\/student-loans\/articles\/2023-student-loan-repayment-survey\" data-ylk=\"slk:study;cpos:5;pos:1;elm:context_link;itc:0\" class=\"link rapid-noclick-resp\">study<\/a> of 1,202 former college students with outstanding federal student loans conducted by US <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> &amp; World Report in June.<\/p>\n<p>Most notably, 85% of respondents believe they will face financial hardship due to student loan repayment. That\u2019s why, according to Dunn, borrowers will have to act fast to avoid defaulting on other financial obligations.<\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:6;pos:1\" href=\"https:\/\/finance.yahoo.com\/personal-finance\/when-do-student-loans-resume-203115948.html\" data-ylk=\"slk:Read more: Worried about when student loan repayments resume? These programs could help;cpos:6;pos:1;elm:context_link;itc:0;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link rapid-noclick-resp yahoo-link\"><em>Read more: Worried about when student loan repayments resume? These programs could help<\/em><\/a><\/p>\n<p>One way to plan ahead is by considering the <a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:7;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/student-loans-biden-debuts-application-for-new-affordable-repayment-plan-175113679.html\" data-ylk=\"slk:new income-driven repayment plan;cpos:7;pos:1;elm:context_link;itc:0;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link rapid-noclick-resp yahoo-link\">new income-driven repayment plan<\/a> available from the Education Department.<\/p>\n<p>At least 78% plan on applying for deferment or forbearance once student loan payments resume, US News noted. Some 83% plan on using other strategies to reduce payments, such as enrolling in an income-driven repayment (34%) or an extended repayment plan (23%).<\/p>\n<p>Another option is the <a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:8;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/student-loans-biden-unveils-plan-b-after-supreme-court-strikes-down-forgiveness-210448430.html\" data-ylk=\"slk:12-month on-ramp program;cpos:8;pos:1;elm:context_link;itc:0;outcm:mb_qualified_link;_E:mb_qualified_link;ct:story;\" class=\"link rapid-noclick-resp yahoo-link\">12-month on-ramp program<\/a>, which will protect borrowers from the \u201charshest consequences of late, missed, or partial payments,\u201d the <a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:9;pos:1\" href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2023\/06\/30\/fact-sheet-president-biden-announces-new-actions-to-provide-debt-relief-and-support-for-student-loan-borrowers\/#:~:text=In%20addition%2C%20to%20protect%20the,borrowers%20who%20miss%20monthly%20payments\" data-ylk=\"slk:White House;cpos:9;pos:1;elm:context_link;itc:0\" class=\"link rapid-noclick-resp\">White House <\/a>said.<\/p>\n<p>\u201cYoung people are already facing an uphill battle when it comes to their finances \u2014 it\u2019s not their parents\u2019 financial environment by any means,\u201d Dunn said. \u201cParticularly since such a large number of young people have student loans to pay off, many, many people have a reason to be concerned.\u201d<\/p>\n<p><em>Gabriella Cruz-Martinez is a personal finance reporter at Yahoo Finance. Follow her on <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> <\/em><a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:10;pos:1\" href=\"https:\/\/twitter.com\/__gabriellacruz\" data-ylk=\"slk:@__gabriellacruz;cpos:10;pos:1;elm:context_link;itc:0\" class=\"link rapid-noclick-resp\"><em>@__gabriellacruz<\/em><\/a><em>.<\/em><\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:11;pos:1\" href=\"https:\/\/finance.yahoo.com\/topic\/personal-finance\" data-ylk=\"slk:Click here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and more;cpos:11;pos:1;elm:context_link;itc:0\" class=\"link rapid-noclick-resp\"><strong>Click here for the latest personal finance news to help you with investing, paying off debt, buying a home, retirement, and more<\/strong><\/a><\/p>\n<p><a rel=\"nofollow noopener\" target=\"_blank\" data-i13n=\"cpos:12;pos:1\" href=\"https:\/\/finance.yahoo.com\/news\/\" data-ylk=\"slk:Read the latest financial and business news from Yahoo Finance;cpos:12;pos:1;elm:context_link;itc:0\" class=\"link rapid-noclick-resp\"><strong>Read the latest financial and business news from Yahoo Finance<\/strong><\/a><\/p>\n<\/div>\n<p><script async src=\"\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more News articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/news\/\" target=\"_blank\" rel=\"noopener\">News category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/www.aol.com\/finance\/young-adults-more-reliant-credit-172038320.html\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The countdown until the student loan payment pause is lifted in October is ticking, and some experts worry that once payments resume, many younger Americans will find it harder to dig themselves out of credit card debt. About 53% of millennials and 41% of Gen Z respondents said they were more reliant on credit cards&#8230;<\/p>\n","protected":false},"author":1,"featured_media":586864,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/s.yimg.com\/ny\/api\/res\/1.2\/0eI2rPhW54WSL02XIymK_Q--\/YXBwaWQ9aGlnaGxhbmRlcjt3PTEyMDA7aD04MTI-\/https:\/\/media.zenfs.com\/en\/aol_yahoo_finance_433\/832d265a3886f658baa07941b71603de","fifu_image_alt":"","footnotes":""},"categories":[70897],"tags":[],"class_list":["post-586863","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/586863","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=586863"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/586863\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/586864"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=586863"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=586863"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=586863"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}