Explainer
How Gen Z Ended Up in So Much Debt
An unfortunate confluence of financial hardships has young Americans playing from behind.
Young Americans today face a serious debt crisis. And it’s making the American Dream seem more like an illusion.
Both Gen Zers and younger millennials were hit by a nasty one-two punch — the Covid-19 pandemic and then the worst inflation in decades — at critical points in their financial journeys. Now, those aged 18 to 29 are carrying $1.12 trillion of debt, according to the Federal Reserve Bank of New York. While that only makes up 6.3% of the total $17.8 trillion in US consumer debt, it’s still a huge burden to carry at an early point in their financial development.