Studies are often being done to see how young Americans are using credit cards compared to generations in the past. It has been found that young Americans are using credit cards more frequently and are taking a longer time to pay off the amount of debt owed. The studies are being done in Ohio State. Professors are looking at what young Americans, born in 1980 to 1984, are spending now compared to their parents and their grandparents' generations when they were the same age as them. It has been found that young Americans are spending $5,500 more than their parents' generations and $8,000 more than their grandparent's generation with credit cards alone.
Young Americans are using credit cards to try to build their credit history, but are doing it in the wrong way from what the studies show. They are using credit cards to pay for their bills, needs, and wants without having the funds available to pay it off in full each month. This is causing their debt to raise making it harder to pay off in a timely manner. This is putting a lot of young Americans in danger of having financial troubles especially in the near future.
Some young Americans don't realize that credit cards are not the only option available to help build their credit. Credit cards are the easiest thing to get their hands on when they first start applying for credit. If they were to focus on paying their bills on time each month and in the full amount that is due, they will actually be able to pay off their debt faster. If this trend doesn't change, many future generations are going to find themselves being in credit card debt that will be uncontrollable.