Rising Tide Blog

Tom: Here’s director and senior financial planner, Rising Tide Financial Services, Matt Hale. Good afternoon.

Matt: Good afternoon, Tom, how are you?

Tom: Well, I’m good. So this article I read in the Fin Review this morning said that, younger people in particular, they’re either getting rid of credit cards or if they don’t have them they’re not applying for them. Do you see that trend?

Matt: Yeah, definitely. I think there’s three really key reasons why the death of the credit card is potentially not imminent, but close. Firstly, as you mentioned, there’s other alternatives, like afterpay. Second is the lower perceived value. The points that people can get are worth less than what they used to be. I don’t think there’s a big fee avoidance in these generations. And then also, I think people are clear on the negative impact that credit cards can have on your overall financial circumstance.