Why Millennials are Terrified of Credit Cards

[Fuerza]

I've been seeing these types of articles a lot lately. I admit I was a debit card user for years. For me it was a means of money management, if it was in my bank account I could debit it out and not think about money management. I'm a 100% credit card user now for security reasons, rewards and I now spend less. Millennials seem to fall into my earlier habit of what's in my account I can spend. Lazy money management, the excuses I read about paint a lazy picture of them not to mention the sense of entitlement that is constantly written about IMO.

Thoughts?

http://time.com/money/3274584/millennials-credit-cards/?xid=timefb

 

[f0xx]

This makes a lot of sense and reflects a lot of my millennial friends.
A lot of my friends don't like credit cards because

A. they're already neck deep in debt (student loans)
B. our parents suffered hard during the financial crash and used their CC's to survive (and got burned)
C. they have siblings that remembered the whole "go to college and you'll get CC's thrown at you" which lead to them misusing them.

I don't trust credit cards either and do find myself using my debit card.
I don't like spending money I don't have.

While a charge card is nice... It's still another thing to remember. Why use a charge card over a debit card? (sans protections etc.)

I could go on and on.

 

[projectx]

Millennials seem to fall into my earlier habit of what's in my account I can spend. Lazy money management, the excuses I read about paint a lazy picture of them not to mention the sense of entitlement that is constantly written about IMO.

Thoughts?

My thoughts are I couldn't disagree more. Since when is deciding to only use the resources a person has earned considered entitlement? Yes, a credit card is a great tool to help build credit, but it's not the only tool. Regardless, nobody knows their spending habits, strengths & weaknesses better than the individual themselves. If avoiding a credit card is a self imposed safeguard to keep their ledger in the black, then good for them.

Besides, the more the general population has adverse views on obtaining a credit card, the more desperate banks will be to capture customers and dole out large sign up bonuses.

 

[f0xx]

Lazy money management, the excuses I read about paint a lazy picture of them not to mention the sense of entitlement that is constantly written about IMO.

I didn't see this last night.
As for money management. What money? Most of my friends coming out of college are back at home with mom & dad because the job market blows.
Majority of them don't have a job in their degree field.

Again. What money? Most people would rather spend what's in their account (or whats not in their account) than using a CC. Why spend money you don't have?
I only started getting into credit when I was denied for a car loan (without cosign).

 

[Fuerza]

I hear what you both say loud and clear. I'm military and enjoy a small untouched reality of job security. With that being said, we ( the military ) are always "hiring". I do have civilian friends some that own their own small business, some that oil fields. The constant has always been unreliability, or drug use, these are jobs that pay good money.

We fired 2 nannies in the past month because they were late. They would always rebuttal saying sorry or I'm reliable... No you're not...

Granted jobs aren't in your back yard or your field of study. My degree is in Criminal Justice however my military career field is unrelated to my education. My point is sometimes you can't do what you want when you want. The entitlement comes from these young guys not settling for anything other than what they want. I'll save the endless rambling.

The big bad student loan thing has been preached since the 80's. I graduated college without student loans working nights as a security guard hating life everyday.... Builds character.

I admit I had to pench pennies, which led to my debit card lifestyle. I never blamed or thought credit cards where bad. It just takes a lot of personal discipline to use them effectively. My parents are horrible money managers too. I learned from their mistakes, not blaming the credit card company's. And yes my dad and his wife lost their home. It's scary! Life isn't a bubble you can't live in fear. Stay hungry.

 

[BoonDR]

Older millennial here, I notice this too. I work with many in my age group that think my hobby is insanity, they are devoted debit card users, even while making 6 figures. Our generation was raised on a steady diet of "credit cards are evil", when really it should have been "debt is evil".

 

[loves2fly]

I'm an immigrant from Asia and when I first came to the US to do my specialty training, I was debt free. I paid everything with cash until I realized this so called credit report and how important it was. It didn't take long before I got my CC, I put small charges on it and paid the full balance. Not long after my mailbox was full of targeted offers to apply for their card. I didn't do MS then, until a few years ago. I have the notion that CCs are not evil per se, if the person who has them uses them responsibly, it can be a great financial tool for them; but if used carelessly, it wrecks havoc in ones finances quickly. As always, caveat emptor.