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Young adults turning away from credit cards in favor of debit cards

credit-card-finance2A recent report by Mercator Advisory Group found that while consumer credit card use remains widely popular, young adults between age 18 and 35 have turned away from credit cards.

Only 59 percent of young adults in the 18 to 35 age group have credit cards, compared to 70 percent of seniors. Younger consumers are also three times more likely, at 36 percent, than seniors, at 12 percent, to cut back on credit card spending in favor of debit card use, ATM Marketplace reports.

“The anti-credit card sentiment appears to be waning,” Karen Augustine, the manager of CustomerMonitor Survey Series at Mercator and author of the report, said, according to ATM Marketplace. “But issuers need to address the needs of the young adults in order to stimulate greater credit card volume.”

The report is the fourth of eight reports based on Mercator’s CustomerMonitor Survey Series, the data of which is compiled from a national sample of 1,003 online consumer survey responses conducted last June.

The survey also found that, in terms of credit card usage, 47 percent of consumers used their credit cards for online purchases, 36 percent used credit cards for better rewards and 30 percent of consumers used credit cards for as many purchases as possible.

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