A study released today by credit card comparison website www.SecuredCreditCards4u.com shows young American adults would rather have material goods today they can't truly afford at the risk of defaulting on credit card debt than experience delayed gratification by saving for these goods.
Online PR News – 21-June-2011 – – A study released today by credit card comparison website www.SecuredCreditCards4u.com shows young American adults would rather have material goods today they can't truly afford at the risk of defaulting on credit card debt than experience delayed gratification by saving for these goods.
The study of 1,000 Facebook users aged 18-29 found that young adults are becoming used to having what they want, when they want it and are not prepared to wait. Richard Greenwood of SecuredCreditCards4u.com thinks this is no surprise; "in a world of instant downloads, content on demand and heavy marketing of high value items such as technology to a youth market it is no surprise people don't want to wait".
The survey found that given the choice of using a credit card to buy a high value item they desire now that the respondent could not afford from the money in their bank account, living without the item or saving for the item, 63% would buy it now using a credit card. Only 26% would take the time to save up.
Mr Greenwood suggests this attitude risks young adults damaging their credit score; 'With young adults introduced to student credit cards at a young age there is a risk that credit scores could be damaged if spending is not managed closely. This will have big repercussions down the track when seeking out a loan or mortgage.'
SecuredCreditCards4u.com suggest the following steps to maintaining and increasing credit score:
* Open an online savings account with a good interest rate and aim to save up for large items
* Start building up your credit score as early as possible. Credit scores take up to seven years to build up to an excellent rating. Secured credit cards offer a great option as avoid the risk of ending up in debt but are counted by the banks as a way to increase credit scores. Other safe credit card options such as prepaid credit cards tend not to help credit scores.
* Get a Visa debit card for everyday spending so you can enjoy the convenience of a credit card without the risk of debt.
* Create a budget and track your expenses on paper or using a tool such as Mint.com so you know where your money is going.