Credit card debt is no longer trendy.
The average credit card debt made a significant drop in 2012 and it was the unlikely Generation Y leading the trend.
Generation Y (born between 1979 and 1991) are often perceived negatively by older generations, who dismiss Gen Y as self entitled and even lazy, making many skeptical over who will carry the financial burden of an aging population, amongst an uncertain economic future.
But the results from a study by RaboDirect show that Gen Y are proving their critics wrong. The average Australian credit card debt has dropped by 2.3% to $3,262.60 and financial experts are attributing it to Gen Y ditching their credit cards for a less risky debit card. And the study shows that it's not just credit cards where Gen Y are leading the way. A staggering 84 percent of Generation Y sought out financial advice in 2012, compared to the overall average of 76 percent. Many have now also accumulated some very impressive deposits, dismissing the criticism for their apathetic inclinations to leaving home.
While not everyone will want to switch to a debit card, other generations should be following the trend to reduce the amount owing on their credit cards. One of the simplest ways to reduce debt is to switch to a low rate credit card with a low balance transfer rate.
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