Gen Z is racking up credit card debt early. There’s a multitude of factors compounding Gen Z’s reliance on, or excessive use of, credit cards. For one, credit card companies have sought them out—offering them premium cards with fewer qualifications, encouraging them to build up rewards points by spending big. They’re also likely still riding the post-pandemic “revenge spending” wave, trying to make the most of the now (as we said they would buy into the Joy Economy in 2024). But the result is that 22-24-year-olds reportedly have an average credit card balance 26% higher than Millennials did 10 years ago, at over $2.8K last year. In 2024, Gen Z’s average credit card debt increased more than any other generations’, while their average credit scores fell. Many worry these credit card habits will follow Gen Z later in life, making milestone purchases like homes even harder to achieve. (Business Insider)
📊 YPulse data: 20% of 18-24-year-olds hold credit card debt
