This research investigates how young adults in Malaysia are affected by e-commerce activities, materialism, and behavioural stimuli on credit debt, while cashless transactions are studied as a moderating variable. Employing quantitative methodology, data were collected from 370 respondents through an online survey. The findings show that materialism contributes significantly to credit debt levels, while the mediating explains the effect of e-commerce activities on credit debt levels. Moreover, it was established that consumers’ habit of impulse buying significantly affects trends in cashless transaction systems, while escapism does not relate significantly to cashless transaction systems findings. The results indicate a need for financial literacy interventions, considering the young population's high credit debt burden.