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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Revolving Debt in the United States: Ready to Charge, but Exercise Caution
Percentage of Credit Card Originations by Age Group:
- Generation Z borrowers increased their percentage of credit card originations for four consecutive years.
- The percentage of total Gen Z borrowers rose from 7.5% in Q2 2018 to 14.2% in Q2 2021.
- The percentage of total Millennial borrowers grew from 30% in Q2 2018 to 32.7% in Q2 2021.
- The percentage of total Gen X borrowers was 28.8% in both Q2 2018 and Q2 2021.
- The percentage of total Baby Boomer borrowers decreased from 27.8% in Q2 2018 to 21.3% in Q2 2021.
- The percentage of total Silent Generation borrowers decreased from 6% in Q2 2018 to 3% in Q2 2021.
About Viewpoint
Credit card issuers acted aggressively to restore revolving debt, thereby offsetting the interest revenue loss resulting from COVID-related changes in purchasing and borrowing habits. However, while growth results effectively rebuilt portfolios, credit card issuers must be cautious about growing with new, riskier accounts rather than established card accounts.
