Gen Y prefer debit cards to credit cards

The number of credit card accounts rose by just 200,000 to 15.2 million – less than a third of the pace prior to the global financial crisis. The number of accounts without an interest-free period hit a record low of 320,000 in November and was down 5.9 per cent over the year.

By contrast, the number of debit cards rose by 6.6 per cent to 36 million. CommSec chief economist Craig James said he believed that the trend away from credit cards to debit cards was being led by younger consumers.

“It's clear, anecdotally, that Gen Y would prefer not to have credit cards. They have a preference for debit cards. They'd prefer not to get themselves into debt,” Mr James said.

The use of debit cards to withdraw cash at supermarkets is up 45 per cent on a year ago.

Source: Courier Mail