Millennials Lead Consumer Debt, Gen Z Debt Grows

Debt pressures are rising across generations, though the reports measure different forms of borrowing: Millennials now hold nearly 37% of U.S. consumer debt, while Gen Z carries more debt than Millennials did at the same age, even after inflation adjustment. Among student-loan borrowers, Gen X had the highest delinquency rate at 10.4%, and federal student-loan defaults exceeded 9.3 million, underscoring that repayment difficulties extend well beyond younger borrowers. Reports point to high housing and living costs, unexpected expenses, student loans, credit-card borrowing and buy-now-pay-later plans as contributors to younger adults’ financial strain. A survey found that 87% of Millennials and 77% of Gen Z respondents carried some debt, with credit-card debt the most common unsecured debt; experts also warn that installment payments and high-interest balances can make overspending easier. Debt-related shame may lead some younger adults to seek advice from AI rather than people close to them, while financial advisers recommend budgeting carefully and seeking help when payments become difficult.