Will Younger Generations Turn to Loans and Credit Cards Less Often?

MX’s latest consumer survey indicates that younger generations may be learning from their predecessors and adopting new financial habits to decrease debt. Take a look at the stats: 

Swiping up debt. When asked what best describes how they use a credit card, the largest portion of respondents — 39% — say they pay off their full balance every month. And, among Gen Z respondents, 1 in 5 say they don’t have one. 

Looking beyond loans. When asked what statement most aligns with their perspective on applying for loans, 35% of Gen Z and 36% of Millennials reported feeling more aligned to paying in full instead of carrying a loan. Instead, they are the generations most likely to leverage Buy Now, Pay Later services. Twenty-four percent of Gen Z and 19% of Millennials say they use BNPL to make large purchases rather than applying for a loan.