As if this wasn’t bad enough, they are also paying their debts more slowly than older cardholders. This makes you stop and wonder. Does the younger generation attach any stigma at all to being in credit card debt, or have they accepted the minimal monthly payment lifestyle that is being touted on television day in and day out?
Think about it. Very rarely do you see the actual price of a new car. You only see the monthly payment amount. In the short term, this is very scary from an individual standpoint. These individuals are treading on thin ice from a very early stage of life. If they do not experience some sort of financial windfall or gain financial literacy, life will be a rollercoaster ride of charge and spend. The day will come when they want to retire and it’s not possible because their bills far outweigh their income. If this lifestyle continues for the majority of 20- and 30-year-old couples, I’m really worried about the future
There are far too many children born out of wedlock. There are far too many single moms not collecting child support—and there are far too many companies willing to accept credit cards for their services. We could very well have an entire generation who charges and pays minimal monthly payments for their entire lives. If you think of all the interest that they will pay, it’s mind blowing.
All of that money going to interest in monthly payments could make for one hell of a retirement plan.