Young Adults Favor Alternative Financial Products

The youth are always the ones on the forefront of any new movement. Be it rock n’ roll and protesting the Vietnam War in the 60’s and 70’s, video games and computers in the 80’s and 90’s, or even non-traditional financial products in the post-financial crisis era.

Young adults certainly had it bad back during the times of the Vietnam War, when a high school graduate could be drafted involuntarily into serving the United States Army. But today’s generation of college-age adults have unique challenges in front of them, as well.

For starters, the recession and massive job losses have created a glut of hirable employees that are more qualified and more experienced than recent college grads, who are being forced to take jobs that don’t require a college degree just to make ends meet. At the same time, student loans are more expensive than ever before, and the amount of outstanding student loans owed to the Federal government has never been higher.

Raised in the era of exorbitant credit card debt, this generation also seems to have quite a penchant for shopping on credit. It’s not surprising to learn that young adults aged 18-24 are struggling to keep reputable credit scores, and are 2.5 times more likely to have a low credit rating than someone 25 or older.

Weighed down by multiple economic factors, young adults are turning to alternative forms of quick credit in mass, according to innovative alternative loan lender Think Finance, who claims that 45% of young adults surveyed claimed to have used some sort of non-bank loan to solve temporary money problems.

Cash advance loans, payday loans, pawn shop loans, and prepaid debit cards are fan favorites among college students and recent grads. With mounting personal debt, continued unemployment, massive national debt, and a sluggish economy, what’s really in store for this generation of our nation’s best and brightest?

Leave a Reply

Your email address will not be published.