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Infographic: Millennials swap credit cards for student loans

Summary

More young consumers are turning their backs on credit cards and piling on student loan debt, according to research from FICO

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Young consumers are turning their backs on credit cards and piling on student loans, according to June 2013 data from FICO.

FICO tracked a dramatic shift in debt weight among 18- to 29-year-olds between 2007 and 2012. As the charts below show, the average mortgage debt and credit card debt loads during that time span shrank, while student loan debt took their place on the debt pie for those in the millennial age group.

Debt payoff is only one reason for the falloff in card debt, according to FICO. The other reason? Millennials are becoming less likely to have credit cards. Back in October 2007, 9 percent of 18- to 29-year-olds had no credit cards. By October 2012, the cardless youth faction had nearly doubled to 16 percent.

Millennials swap credit cards for student loans
See related:5 credit score secrets of the young and FICO-savvy, More infographics

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In Research and Statistics

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Using one or more credit cards to get out from under the burden of student loan payments can seem tempting, but it’s a step in the wrong direction

Published: July 1, 2013

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Credit Card Rate Report Updated: December 4th, 2019
Business
15.09%
Airline
16.88%
Cash Back
17.38%
Reward
17.04%
Student
18.58%

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