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Gen Z Is Racking Up Credit Card Debt Faster Than Any Other Generation
Younger borrowers are the only ones seeing an increase in past-due accounts, which could hurt their credit scores.
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Persistent inflation has made Gen Z’s transition to adulthood hard. Now, it’s landing them in debt at a critical point in their financial development.
According to new report from Credit Karma, members of Gen Z saw their average debt balloon to $16,283 in the final quarter of last year, up 3.1% compared to the three months through May. That’s the biggest increase out of any generation, although their overall average debt was lower than their older counterparts.