Young Americans Are Ditching Credit Cards

June 14, 2013 by CNN Money

The number of young Americans who are living without credit cards has doubled since the recession, according to new research.

About 16% of consumers ages 18 to 29 didn’t have a single credit card by the end of 2012 — up from 8% in 2007, according to data that credit score provider FICO collected from the credit files of millions of consumers.

s a result, credit card debt has declined by about a third among this age group — from an average $3,073 to $2,087 per person.

After watching older generations — like their parents — get hit hard by the recession, many younger Americans are shying away from credit and opting for debit cards instead, according to FICO.

Prepaid cards have also become attractive alternatives, said John Ulzheimer, president of consumer education at SmartCredit.com.

“[T]here has been very aggressive marketing of prepaid debit cards over the past few years targeting young people and minorities,” he said. “So it’s not a surprise that more young people are using prepaid debit cards over credit cards.”