At 83 million strong, Millennials now make up one quarter of the U.S. population. As such a large group, they also represent $200 billion in spending power – the second-most of any generation behind Baby Boomers. Accordingly, it would behoove brands in the financial services industry to cater to this ascending group. However, finances are a touchy subject for Millennials, as evidenced by their feelings about credit cards. Here, we take a look at their behavior and concerns to understand how financial institutions can get Millennials interested in their offerings.
Here are five facts you need to know about Millennials and their relationship with credit cards:
Credit Card Debt is Pervasive
$5,700 is the average balance for households carrying credit card debt
Millennials Aren't Buying It
18-29 - 33%
30-49 - 55%
50-64 - 62%
65+ - 68%
35.2% find credit card debt the scariest thing in their lives, compared to 20.4% who fear death above all else
What Is It About Credit Cards?
33% accruing interest
32% making monthly payments
20.4% too reliant on credit options
7.8% don't understand interest rates
The Reasons for Debt
34% used credit cards to take care of emergency or unexpected expenses
31.8% made one large purchase that exceeded available funds
18.6% need to rely on credit card to supplement their income
4% can afford to pay off their debt, but choose not to
Confidence is Still Sky High
30.6% Extremely confident that they'll be able to pay off debt in the next 12 months
20% Very confident
29.4% Somewhat confident
12.4% Not very confident
7.6% Not at all confident
Contact us today to learn how our team can help you reach Millennials with your next campaign.