NEW YORK—One in three Gen Zers with credit cards currently carry debt, while 56% report missing or making late payments, a new study shows.
Mismanaged budgets and living costs that are too high are significant factors behind these debt levels, according to a study from CreditCards.com.
The report, conducted in September among 1,261 full-time Gen Z workers, examined the credit card habits among Gen Zers—including credit card use, debt levels and late payments.
Key Findings:
- 63% of Gen Zers have credit cards, and among them, 33% carry debt
- One in four Gen Z credit card users max out their cards most months
- 19% of Gen Zers do not know their credit score, underscoring financial literacy gaps
- 9% rely on their parents to help cover credit card payments.
Over half of Gen Zers with credit cards have missed payments or relied on parental support, while nearly one in five say they have little understanding of how their credit scores impact major purchases. Additionally, many Gen Zers do not use tools that could help them manage finances: 41% have never used a budgeting app or financial planning tool, the data show.
The survey also highlights the need for financial education—69% of Gen Zers believe financial literacy courses should be mandatory in both high school and college.
“The financial outlook for many young Gen Z credit card holders is challenging. Almost half have not begun saving for retirement, and three in ten Gen Zers with credit cards have less than $100 in non-retirement account savings,” CreditCards.com said.