Millennials cop a lot of flak for spending their cash on smashed avocado and holidays, rather than saving to buy a home.

However there’s a new financially-savvy Millennial trend that’s putting the rest of us to shame: buy now, pay later.

In the old days, it was called LayBy, but over the last decade or so people switched to credit cards to make purchases and pay for them later. Enter the new wave of buy now, pay later – things like AfterPay and Zip Pay – and they’re being lapped up by the younger generations.

Why? One possible explanation is that younger people aren’t interested in being fleeced by banks in the form of credit card interest, which can often sit around the 20% mark. Also, they don’t want to run the risk of tarnishing their credit history by missing credit card payments, and have no interest in paying annual fees, merchant fees, or racking up frequent flyer points.

What they do like is 10 weeks of no fees and no interest with these buy now, pay later companies. And with the Christmas splurge coming up, it’s worth considering these services to avoid those hefty interest charges come January.

And the trend is also being played out in the numbers. At this time last year credit card lending tumbled to 13-year record low.

It’s also worth noting that in recent times, 1.59 million Aussies have used a buy now, pay later service.

So if you prefer not to pay your credit card provider massive amounts of interest, perhaps it’s time to chop up the credit card for good, and consider the other options.