It’s no secret that credit card use and household debt in the United States are on the rise. In fact, the average U.S. household with debt has about $15,355 in credit card debt. Surprisingly, however, the percentage of credit card debt among millennials has reached its lowest point since 1989.
So what’s going on? A recent study by The New York Times reported that individuals under the age of 35 are taking on fewer mortgage and auto loans than previous generations, thus racking up less credit card debt.
However, it’s not all good news for the millennial set. Researchers are pointing to the rise of student loan debt as a major factor. The average household with debt carries $47,712 in student loan debt, and the average American under the age of 35 is burdened by 182% more in college loans than the students who graduated in 1995.
Because of this heavy debt, fewer millennials are actually able to qualify for credit cards in the first place. New legislation passed in 2009 under the Credit Card Accountability Responsibility and Disclosure Act made it more difficult for individuals over the age of 21 to sign up for a credit card unless they could prove they had the money to pay banks. With so much debt already accumulated, proving this can be more or less impossible for recent college grads.
In January, 2016, PBS NewsHour explained that more and more millennials are turning to pawn shop services for cash loans. In fact, roughly 80% of customers are getting a cash loan from a pawn shop more than twice a year, with the average pawn (or collateral) loan amount steadily increasing.
And according to PBS, many millennials are choosing this method because they simply don’t have savings to fall back on. Helaine Olen, author of “The Index Card: Why Personal Finance Doesn’t Have to Be Complicated,” noted that alternative financial services — like getting a cash loan — are used when you are in a pinch and need cash that very same day. In addition, many millennials have not established credit yet, so they would not be approved for a loan. Turning to a pawn shop can help them to get the funds they need, without going through a credit check.
“They’re coming in with massive student loan debt, and they’re having a horrific time getting a foothold in the workplace and starting salaries aren’t what they once were,” said Olen. Pawn shop loans are giving millennials the fast cash they need to get their lives on track.
If you’re looking for an alternative lending source to obtain a cash loan, get in touch with Gold Coast Jewelry and Pawn. We offer collateral cash loans with no credit check – with an immediate payout. Customers can walk out with the cash in hand in as little as fifteen minutes!
Gold Coast Jewelry and Pawn is a reputable and professional business that has been providing collateral loans to the community for almost a decade. We adhere to all New York state guidelines for collateral lending and offer competitive interest rates. Stop into our store today.
