Not Boomers, Not Millennials: This Generation Has The Most Personal Debt

Debt is a part of life for many Americans. Exact estimates vary, but multiple sources suggest that the vast majority of American adults are dealing with this financial burden. For instance, Debt.org reports that as much as 90% of the U.S. population holds debt in some form. That said, the amount of debt you're carrying could be influenced by the generation into which you were born. If you're part of Gen Z and feeling the weight of money owed, you're far from alone. Gen Z, born between the years of 1997 and 2012, is kicking off adulthood with significantly more debt than any other generation. A 2025 Newsweek poll conducted by Talker Research found that Gen Z carries an average of $94,101 in personal debt. Conversely, millennials were found to owe an average of $59,181, while Gen X owes $53,255.

Meanwhile, a report by Experian from the same year also found that Gen Z's debt grew the most between 2024 and 2025 out of any generation, increasing 7.8% compared to Millennials' 1.6%. Meanwhile, every other generation decreased their debt in the same time period. Along with other alarming stats about consumer debt, these trends indicate Gen Z's debt is set to keep growing. While older generations may have seen debt as an opportunity to build credit for future goals, between higher living costs and a worsening job market, many young adults are struggling to start their careers and relying on "pay later" tactics as a way to survive.

It's also worth considering that a significant portion of Gen Z is still under the age of 18 as of 2026, and therefore unlikely to have personal debt. However, those who do have debt are worse off than older generations were at the same ages. A 2024 study by TransUnion found that, as of 2023, Gen Z averaged $2,834 in credit card debt. That may seem low considering the national household average credit card debt is over three times that amount, but it's considerably more than the $1,708 held by Millennials at the same age in the early 2010s. Even adjusting for inflation, TransUnion data also shows that Gen Z in 2023 owed more than Millennials in 2013 in every major debt category, including credit cards, auto loans, personal loans, and mortgages.

Perhaps even more concerning, TransUnion data shows that Gen Z has worse delinquency rates than Millennials a decade ago, meaning penalty fees could further be adding pains to what borrowers owe. Meanwhile, another worrying find from the Newsweek survey was that over half of the Gen Z respondents said they think about their debt frequently, if not all the time. This mental toll could worsen the money-phobia already crushing younger adults, making it even more difficult to get to better financial standing.