Millennials are relying on their credit cards more than ever as they face their most financially challenging holiday season yet, according to new data.
Since 2020, millennials have used credit cards for the majority of their holiday spending between 70% to 80% and the percentage has been climbing, according to a three-year analysis of 2,000 American millennials.
Credit card use made up a whopping 88% of millennials Black Friday spending this year up from 79% in 2023 and 72% in 2020, according to data from Piere, a personal finance app.
Meanwhile, credit card debt in the US jumped $24 billion to a record $1.17 trillion in the third quarter of 2024 8.1% higher than a year ago, according to a report from the Federal Reserve Bank of New York.
Gen Yers or those born between 1981 and 1996, also known as millennials are leaning on credit cards at record rates as they struggle to stuff stockings and splurge on gifts amid a cost-of-living crisis.
Piere forecasts this holiday season will be the worst yet for credit card debt thanks to stubborn pandemic-era inflation that sent prices on everyday goods sky-high.
The price tag on a dozen eggs, for example, jumped 163% since 2019, according to a CBS News analysis of government data. While a half-gallon of ice cream cost Americans $4.94 in 2019, the same sweet treat costs $6.30 today, the analysis found.
Millennials, in particular, are penny-pinching amid hefty price tags and interest rates that are slow to come down. More than half of millennials in the US reported feeling anxious about finances during the 2024 holiday season — and only 59% said they feel confident they can afford all the expenses tied to Christmas this year, according to Piere.
Weve all heard the overdone avocado toast critiques aimed at millennials, but the truth is theyve faced challenges that older generations didnt, Yuval Shuminer, CEO and co-founder of Piere, told The Post. Record-high housing costs and a general housing shortage are obvious challenges, while large amounts of student debt can make saving money difficult.
Shuminer traced the millennial struggle back to the Great Recession in 2008, when many Gen Yers started their careers and entered the workforce with less financial stability than their parents had, making it more difficult to build wealth.
The market crash cost millennials an estimated $22,000 each on average, according to a 2014 report from the Young Invincibles, a nonprofit formed by young adults in 2009 to advocate for affordable health care.
Most millennials are not going into debt to splurge on luxuries but rather, to keep up with everyday costs, Shuminer said.
When prices for everyday essentials like groceries, gas, or rent climb, millennials are forced to spend more on basic essentials, Shuminer told The Post. But if wages arent increasing at the same rate, that extra money has to come from somewhere, often leading to increased reliance on credit cards or loans to make ends meet.
Some 54% of millennials said the rising cost of living crisis will impact their spending this year, Piere said.
A lawyer representing Sean “Diddy” Combs has told a court there was “mutual” domestic violence between him and his ex-girlfriend Casandra ‘Cassie’ Ventura.
Marc Agnifilo made the claim as he outlined some of the music star’s defence case ahead of the full opening of his trial next week.
Combs has pleaded not guilty to one count of racketeering conspiracy, two counts of sex trafficking and two counts of transportation for prostitution. If convicted, he faces up to life in prison.
Ms Ventura is expected to testify as a star witness for the prosecution during the trial in New York. The final stage of jury selection is due to be held on Monday morning.
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Why is Sean Combs on trial?
Mr Agnifilo told the court on Friday that the defence would “take the position that there was mutual violence” during the pair’s relationship and called on the judge to allow evidence related to this.
The lawyer said Combs‘s legal team intended to argue that “there was hitting on both sides, behaviour on both sides” that constituted violence.
He added: “It is relevant in terms of the coercive aspects, we are admitting domestic violence.”
Image: A court sketch showing Sean ‘Diddy’ Combs (right) as he listens to his lawyer Marc Agnifilo addressing the court. Pic: Reuters
Ms Ventura’s lawyers declined to comment on the allegations.
US District Judge Arun Subramanian said he would rule on whether to allow the evidence on Monday.
Combs, 55, was present in the court on Friday.
He has been held in custody in Brooklyn since his arrest last September.
Prosecutors allege that Combs used his business empire for two decades to lure women with promises of romantic relationships or financial support, then violently coerced them to take part in days-long, drug-fuelled sexual performances known as “Freak Offs”.
Combs’s lawyers say prosecutors are improperly seeking to criminalise his “swinger lifestyle”. They have suggested they will attack the credibility of alleged victims in the case by claiming their allegations are financially motivated.
Police are investigating an alleged attack on a prison officer by Southport triple killer Axel Rudakubana on Thursday, Sky News understands.
A Prison Service spokesperson said: “Police are investigating an attack on a prison officer at HMP Belmarsh yesterday.
“Violence in prison will not be tolerated and we will always push for the strongest possible punishment for attacks on our hardworking staff.”
Rudakubana is serving life in jail for murdering Alice da Silva Aguiar, nine, Bebe King, six, and Elsie Dot Stancombe, seven, at a Taylor Swift-themed dance class last year.
According to The Sun, Rudakubana poured boiling water over the prison officer, who was taken to hospital as a precaution but only suffered minor injuries.
This breaking news story is being updated and more details will be published shortly.
Can Kia’s first electric sedan live up to the hype? After launching the EV4 in Korea, we are finally seeing it in action. A new test drive of the EV4 gives us a closer look at what to expect as Kia prepares to take it global. Here’s how it went down.
Kia EV4 test drive: The good, the bad, and the ugly
Kia claims the EV4 will “set a new standard in electric vehicles” with long-range capabilities, fast charging, and a sleek new design.
The electric sedan features a unique, almost sports-car-like profile with a long-tail silhouette and added roof spoiler.
Kia claims it is “the new look of a sedan fit for the era of electrification.” Despite its four-door design, the company is calling it a new type of sedan.
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The design is not only eye-catching, but it’s also super efficient. With a drag coefficient of just 0.23, the EV4 is Kia’s most aerodynamic vehicle so far, enabling maximum driving range and efficiency.
Kia opened EV4 orders in South Korea in March, starting at about $29,000 (41.92 million won). It’s available with two battery options: 58.2 kWh and 81.4 kWh. The entry-level “Standard Air” model, powered by the 58.2 kWh battery, is rated with up to 237 miles of driving range.
Kia EV4 sedan Korea-spec (Source: Hyundai Motor)
The “Long-Range Air” variant starts at 46.29 million won ($31,800) and has a driving range of up to 331 miles (533 km) in Korea.
With charging speeds of up to 350 kW, the EV4 can charge from 10% to 80% in around 29 minutes. The long-range battery will take about 31 minutes.
Kia EV4 sedan interior (Source: Hyundai Motor)
The interior boasts Kia’s latest ccNC infotainment system with a 30″ Ultra-wide Panoramic Display. The setup includes dual 12.3″ driver displays, navigation screens, and a 5″ air conditioning panel.
With deliveries kicking off, we are seeing some of the first test drives come out. A review fromHealerTV gives us a better idea of what it’s like to drive the EV4 in person.
Kia EV4 test drive (Source: HealerTV)
Sitting next to Kia’s first pickup, the Tasman, the reviewer mentions the EV4 feels “particularly newer.” The test drive starts around the city with a ride quality similar to that of the K5, if not even better.
As you can see from the camera shaking, the ride feels “a bit uncomfortable” on rough roads. However, on normal surfaces and speed bumps, Kia’s electric sedan “feels neither too soft nor too hard,” just normal. The reviewer calls the EV4’s overall ride quality “quite ordinary” with “nothing particularly special about it.”
When accelerating, the electric car was smooth in the beginning but felt “a little lacking in later stages.” Overall, it should be enough for everyday use.
One of the biggest issues was that the rear window appeared too low. The rear brake lights also stick out, making it hard to see clearly through the rearview.
Keep in mind that the test drive was the Korean-spec EV4. Kia will launch the EV4 in Europe later this year and in the US in early 2026.
In the US, the EV4 will include a built-in NACS port for charging at Tesla Superchargers and a driving range of up to 330 (EPA-est) miles. Prices will be revealed closer to launch, but the EV4 is expected to start at around $35,000 to $40,000.
Would you buy Kia’s electric sedan for around $35,000? Or would you rather have the Tesla Model 3, which starts at $42,490 in the US and has up to 363 miles of range? Let us know in the comments.
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