Gen Z Adults Are Paying Rent With Credit Cards

Comfortini and lamarre post on personal finance subjects on Tiktok (surveys show that most consumers of generation Z Turn to social media platforms Like Tiktok and Instagram for financial advice) and the two spoke of paying the rent on their credit card on the platform. None of them work with Bilt, although they can earn points for successful references. Confortini estimates that it has made around 35 references in the past year.

Daniel Heppner, a 25-year-old software developer in Seattle, also invoices his monthly rent from $ 1,700 to his Bilt card and meets the minimum transaction requirement by buying several Amazon gift cards at $ 1 (these purchases have started to be refused, he therefore now uses the card in restaurants and cafes). “Honestly, overall, overall, I have the impression that credit card awards are just a big scam,” he said. “We all pay for this with credit card costs. But I will enjoy getting as much as possible as long as it is the system in which we live. ” Heppner said he had around 10 credit cards and reimburses them in full. “I don’t even know how much it is worth trying to maximize all of this. What do you get, an additional $ 10, $ 20, $ 30 per month? ” The fact that the awards are finance Partly by the interests of people who cannot pay their bills are “really inequitable,” he said, but the way business works today, credit cards are “not something that I can boycott”.

For consumers who do not try to win awards or who cannot reimburse their balance in full, the invoicing of these expenses on a credit card may indicate a financial deficit, “and this certainly happens with Gen Z,” said Matt Schulz, chief credit analyst in Lendingtree. “This is a frightening thing, especially when you consider the speed with which interest rates have increased in the past year.” THE Average interest rate of the credit card is now 23.55%, the highest since the Schulz company began to follow the monthly prices in 2019. During the first year of the COVVI-19 pandemic, there was a strong increase in tenants who were Invoice rent to their credit cards As they were waiting for emergency funds, according to the Federal Reserve Bank in Philadelphia. In a separate Lendingtree survey, around 45% of generation Z adults live the pay check at the pay check and 62% of people who had no money to pay their bills used their credit cards to cover them.