Younger borrowers are racking up credit card debt faster than any other generation. The Gen Z’s transition to adulthood has been hard due to a volatile economy and high inflation. According to a report from Credit Karma, members o f the Gen Z saw their average debt ballon to over $16K in the final quarter of last year and with inflation and interest rates rising, their overall debt is bound to increase even more. Consumers are leaning more on credit cards to make up the difference between high inflation and stagnate wages, but Gen Z workers on entry level salaries are having more trouble than their older counterparts with keeping up with the soaring cost of living.
Younger generations aren’t just taking more debt, they are also falling behind on payments too. According to reports, GenZ is the only generation to see an increase in past due accounts, which includes credit card, mortgage, student loans and auto loans accounts that are overdue by more than 30 days. As the economy continues to struggle, inflation and interest rates continue to rise, we expect to see older generations start to fall behind on debt payments as well.
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