Millennials Tap Lenders and Pawnshops Not Just Because They Are Broke

Financial Status of MillennialsWhat is a common notion people have about Millennials? Their supposed laziness may be the first to pop up in your head. Next to that is their zero-balance credit, which many believe to be the reason they often turn to lenders and pawnshops for money. Millennials are known to be broke, but are they?

Not All the Time

The need for money is a given, but it does not always mean they are cash strapped. It is a matter of filling in for the times they are short of funds. Perhaps they just find applying for easy loans from lenders like Rapid Loans more convenient than going to the banks or waiting for their salary.

Most young borrowers have regular sources of income. But, pitching in can sometimes be a challenge, especially if payday is not until next week. In this scenario, short-term loans are a feasible, and at times, ideal, alternatives.

Eric Modell, a pawnshop owner, says Millennials are able to find a financial solution that does not hurt their credit score in lenders and other services. ‘They worry about how a lower credit score could impact their job, or their ability to get a mortgage when they need it’, he said. Modell also points out that these alternatives are easy resources, making them more appealing to Millennials.

The Path to Independence

Most young people expect to be financially independent in their mid-20s. The idea of not having enough money stresses them out, and it seems that they worry more about it than their elders do. While those born in 1982-2004 may seem to have a carefree attitude about money matters, many of them believe they will have to rely on their personal bank account to last them through the next few decades.

Also, many think they are not doing enough to secure their future financial situation. While a good number of Millennials have their own bank accounts, they still tap on other financial services to fund their immediate needs and avoid dipping a hand on their savings.

A Lot on Their Plate

It may not seem like it, but Millennials have a lot on their plate. Expectations and misconceptions are getting to them. There is the need to prove themselves, financially and otherwise. If lenders and pawnshops do a lot to help them, you may as well give them a break. They may or may not be broke, but expectations are breaking them.