Debit Cards Are Growing In Popularity In The U.S.

What was considered a useless and highly ineffective way to manage finances just a decade ago, has become a popular product that is highly desirable with most young adults today. We are talking about the prepaid debit card, a product which most young adults, particularly millennials have come to use quite frequently.

As a generation which is marked by debt, both general and of the student variety, even advantageous financial packages which involve additional debt are unappealing to this new generation of consumers.

According to a survey published by TD Bank one third of all U.S. citizens aged 18 to 34 possess at least one reloadable prepaid debit card. The number is quite high when compared to all U.S. citizens where only one quarter possess such a debit card. The 18 to 34 age group is generally used to describe millennials although some definitions go under and over the age limits. The same survey suggests that over 60 percent of all millennials are considering using a debit card when compared to only 50 percent of the entire population.

The reason for the growing popularity of these debit cards is basically down to an increase in quality. While a short time ago prepaid debit cards where known for their exorbitant fees, even the highly marketed products promoted by celebrities like Justin Bieber or Kim Kardashian, consumer criticism, and better offers put forward by Chase and American Express have forced the entire market to change or simply close up shop.

The change isn’t just a promotional gimmick as 2014 Pew research suggests that current day debit cards are economically advantageous when compared to the ones in 2012.

According to the survey carried out by TD Bank, approximately 21 percent of debit card users earn over $100.000 yearly. Over 46 percent of users declared that prepaid debit cards help them keep better track of income and expenditures while among millennials the percentage goes up to 60 percent.

The TD Bank survey concludes that some of the main reasons for the newfound popularity of debit cards are their simplicity, convenience and efficiency.

Another advantage for debit cards is that users can register for one without having to undergo a credit check, and will receive one even if they have a poor credit score. They are considered a cheap and efficient tool that can prevent overspending and promote responsible finance management by both bankers and consumers.