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Research and Statistics

Infographic: Millennials swap credit cards for student loans

Kristin McGrath
Juan Rodriguez

by Kristin McGrath, and Juan Rodriguez

July 2, 2013

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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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 <center><a href=”https://www.creditcards.com/credit-card-news/millennials-swap-credit-cards-student-loans-1701/”><img alt=”Millennials shed credit card debt, take on student loans” border=”0″ src=”https://www.creditcards.com/credit-card-news/images/infographic-young-consumers-2.jpg” /></a> </center>

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Kristin McGrath is a Former editor at CreditCards.com.

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