Will young people be the next generation to depend upon cash advances to help cover monthly bills? According to CNW Marketing Research, they are watching a change in how young adults are spending their money. A drop in new home and car purchases impacts the overall economy. If these young people are not spending on what was once typical purchases, then what are they consuming?
Technology is the latest craze which shows young adults spending large portions of their income. Just in the last few years, we have all watched the influx of smartphones, laptops, television and tablets to name just a few. Let’s not forget the upgrades versions of each of these which come out every few months. The competition between companies to create the next “it” version of a product/service which Americans are dropping billions of dollars on.
Talk about keeping up with the Jones. Income is being eaten by the latest versions. Look at how cell phones have taken over our lives. Besides the initial costs of the phone, the monthly service plans in order to take advantage of the phone’s capabilities. Once the phone is operational, access to Internet and applications give a more convenient avenue for purchasing power. These products are a central focus to the everyday life of many consumers and young ones are choosing to spend a few thousand dollars within the multimedia platform and refrain from purchasing a new car.
Relying on cash advances is harmful to finances.
It’s a cultural and economic change which could lead young adults towards cash advances. Unemployment and underemployment have both affected this young population’s consumption. Living beyond their means by way of electronics is putting this generation further into debt. Cash advance opportunities will allow them to keep their lifestyle going from one month to another; but at the same time, the reliance of third party money doesn’t seem to deter them.
Bottom line problems for this young generation:
- Leaving college with student loan debt and finding employment opportunities to be minimal.
- Not getting a job in the area studies and therefore earning less than expected.
- Refraining from new cars and home purchases limits secured loans. You can still get a title loan with a used car as long as the person owns the title.
- Overused credit cards to keep up with lifestyle and help with cost of living.
- Relying on payday loans and cash advances online to make payments or keep up with purchasing wants.
- Trying to build credit with overloaded debt will only hurt credit scores over the long haul.
- Living at home, renting without your name on the lease, or crashing with a friend keeps important money management skills off a report.
- Pay cash for a used car or have one given to them outright keeps important loan management history out of the credit bureau’s reports.
Those starting anew need to build their credit in order to support future financial opportunities. Credit cards are revolving lines of credit and a good credit report would also include installment loans. The new generation is growing up with different priorities putting their finances at risk with overuse of credit cards and cash advances.
