(FeaturedNews.com) – Over the third quarter, millennials appear to have surpassed baby boomers in credit card spending according to TransUnion’s Q3 2023 Credit Industry Insights Report. According to the latest report, the balances in the third quarter reached a record $995 billion, meaning that the year-over-year increase has reached 15 percent.
The average consumer balance also increased by 11 percent reaching $6,088 which is another decade high.
Millennials had their balance share also surpass the one of baby boomers. Gen X however remains the generation who is using the most credit utilization. The numbers show that there is a trend of credit reliance as the living costs have increased and there are many challenges that have emerged in the housing market.
Earlier this year, a different study found that 45 percent of millennials ow more on credit cards, than whatever amount they have put aside for cases of emergencies. This also marks a big change in the generation’s financial priorities.
TransUnion senior vice president of global research and consulting Charlie Wise stated that while in recent months the rate of inflation has cooled off, the high prices for goods meant that consumers still had to use their existing credit lines.
Wise argued that it will be interesting to see what changes in these balances after consumers start to feel the effects of student loan payments resuming. The resumption of student loan payments is also a major concern for many Americans, and especially millennials who have been hoping to be able to afford a home.
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