Boomers, Gen Xers, Younger Millennials Favor Credit Payment

Baby Boomer, Generation X, and Younger Millennial consumers prefer to use credit cards to pay their purchases, according to a recent survey. On the other hand, older millennials favour using debit cards while Generation Z adults are still undecided.

According to the survey, carried out by PSCU, the largest US credit union service organization, more Gen X consumers (ages 39-54) using credit (34%) as their primary mode of payment, as compared to debit (30%).

As for the millennials, researchers sometimes divide this generation into two – older millennials (ages 31-38) and younger millennials (ages 23-30) – based on some notable differences that the two groups show. The survey reflects the distinction in their buying habits. Older millennials prefer to use debit (40%) over credit (36%) cards while their younger counterparts show the same spending habits as Gen Xers, as they favour buying through credit (41%) than debit (29%) cards.

Meanwhile, Gen Z adults (ages 18-22) are split on credit vs. debit question, registering a tie (29% apiece).

Perhaps the most surprising takeaway in the study is the results from Baby Boomers (ages 55 and above). Contrary to what most people might assume, more Baby Boomers prefer to use credit cards (51%) as their primary payment mode.

Respondents cite ease of use and convenience as the reason why buyers across generations use credit cards as their primary mode of payment. According to the same study, they often use them to buy tangible goods, groceries, and other routine purchases, as well as large purchases exceeding $200.

While equally convenient and easy to use as credit cards, respondents said they use debit cards for maintaining their budget and for safety.

Credit Card Debt Surpasses $1 Trillion. The preference of Americans to use credit cards was evidently shown another study, this time by personal finance website WalletHub. According to the report, the total credit-card debt in the US exceeded $1 trillion in 2018, the first time in history.

A senior analyst at WalletHub said the record figure showed the confidence of Americans in the economy. However, the analyst also said delinquency rate also increased, indicating that people are spending so much more than they have.

RELATED ARTICLES

Program for an Electric Vehicle Tax Credit for Union-Built Vehicles
Credit

Program for an Electric Vehicle Tax Credit for Union-Built Vehicles Faces Obstacle

House Democrats' plan to provide customers with an additional option to encourage union-built vehicles has sparked controversy and discussion among legislators, manufacturers, and other parties. The House Ways and Means Committee last week cleared the tax breaks for consideration in the Democrats' $3.5 trillion budget bill measure, despite vocal objections...
Williams-Sonoma Key Rewards Credit Card Program
Credit

Williams-Sonoma and Capital One Introduce The Key Rewards Credit Card Program

Williams-Sonoma, Inc., a leading American home retail company, revealed that it has partnered with bank holding company Capital One to introduce the Key Rewards Credit Card Program. The company’s top-level Key Rewards program is upgraded with new credit cards. Cardholders can accumulate rewards when they shop at Williams Sonoma, Inc....
Federal Bank Credit Cards In Partnership With Visa
Credit

Federal Bank Introduces Credit Cards In Partnership With Visa

Federal Bank has announced the introduction of its credit card in India. To offer credit cards to its current clients, the private banking company has collaborated with Visa, the worldwide financial services corporation. As per Shyam Srinivasan, Managing Director and CEO of Federal Bank, the issuance of the card would...
Wells Fargo Personal Credit Lines Closure Plan
Credit

Wells Fargo Drops Personal Credit Lines Closure Plan

Wells Fargo & Co. sparked a public outcry when it announced plans to phase down personal lines of credit in July, but the firm will reverse direction on August 18, 2021. Customers who have been using their personal credit lines have just received notice from the San Francisco-based lender...
Universal Credit Human Rights Legislation
Credit

The Reduction in Universal Credit Violates Human Rights Legislation

According to the UN's poverty expert, reducing universal credit by £20 per week is an "unjustifiable" decision that violates human rights law and would certainly lead to an expansion of poverty. The retreat of the £1,000-a-year uplift from next month, according to Olivier De Schutter, the UN-appointed chair of the...
Credit Cards Dark Web Data Leak
Credit

Hackers Leak 1M Credit Cards on the Dark Web

One million stolen credit cards have been posted by hackers on the Dark Web through AllWorld.Cards. The act was reportedly done by cybercriminals in an attempt to promote their activities and operations, as well as make their organization known. The leaked credit card information was discovered by cybersecurity researchers from...
Carter’s Child Tax Credit May Boost Children’s Apparel Business
Credit

Carter’s Says Child Tax Credit May Boost Children’s Apparel Business

Carter’s, an American retailer for children’s apparel, says that with the new child tax credit rolling out across the United States, and as the usual shopping for back-to-school resumes, the company is confident about its opportunities. To meet the consumers’ demand, the company is being compelled to pay extra to...
Younited Credit Yields Million in Fund
Credit

Younited Credit Yields $170 Million in Fund Round

Younited Credit, a France-based company, has secured $170 million in fund round. Consumers in Europe can choose from a variety of credit options offered by the startup. It also employs a multi-distribution method. The funding round, which is led by Goldman Sachs, has participants including existing investors such as Bpifrance,...
Sterling Construction Modifies Credit Agreement
Credit

Sterling Construction Modifies Credit Agreement with BMO Harris Bank

Sterling Construction Company, Inc. has modified its current credit agreement with BMO Harris Bank, its lending group. It has revealed that numerous terms of the agreement are revised. Two of the terms include lowering the existing credit agreement borrowing interest rate by 2% points and reducing the credit agreement's future...