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Why aren't Millennials racking up credit card debt?

Stashed in: Young Americans, Economics, Personal Finance, Credit

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Since the Credit Card Accountability Responsibility and Disclosure Act of 2009, the number of card agreements declined from 1,045 to 617. The total number of cardholders for college affinity cards, a credit agreement offered to college students in agreement with their university, declined by 40 percent.

Currently, only 17 states require high school students take classes in personal finance and only 22 states offer such a course. According to PricewaterhouseCoopers, just 24 percent of millennials demonstrate basic financial knowledge, showing little understanding of risk diversification and the relationship between interest rates and bonds.

David Weliver, founder of the Money Under 30 website, told PBS NewsHour earlier this year that many millennials don’t have credit yet.

“A lot of people were in their early 20s and in college during Great Recession and thought they were being smart by avoiding credit,” Weliver said.

The market will remain challenging for hopeful homebuyers without substantial credit history.

3 in 4 Millennials don't have basic financial knowledge?!

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