Younger Americans Credit Is Not Good, Rising Cost of Living Main Cause

Debt is no longer just a financial condition for younger Americans – it is a defining feature of how they think, spend, save and relate to one another. A nationally representative survey of 2,000 U.S. adults conducted by Wakefield Research on behalf of National Debt Relief found that 87% of millennials and 77% of Gen Z currently carry debt. Credit cards are the leading culprit for both generations, though millennials carry that balance month-to-month at a noticeably higher rate – 56% compared with 37% of Gen Z respondents. More than 7 in 10 millennials cited the rising cost of living and unexpected expenses as the main causes of their debt in the past year, according to the September 30, 2026 National Debt Relief survey. The scale of that burden is reshaping how younger Americans think about nearly every major life decision – including who they marry and whether to have children at all.

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The survey found that nearly half of millennials (49%) rank a potential romantic partner’s total debt among the top three things they want to know before entering a serious relationship – ahead of arrest history, religious beliefs and political views. More than 7 in 10 Gen Z respondents (72%) said people should prioritize financial security even if it means forgoing children. Debt is not simply a balance sheet problem for this demographic – it carries social weight and emotional stigma. Six in 10 millennials said they would rather publicly display their weight than their total debt load. “This data tells us how deeply money remains tied to how we think others will perceive us,” said Timi Joy Jorgensen, Ph.D., a personal finance expert with National Debt Relief. “These negative debt perceptions can lead to feelings of shame and isolation if honest conversations about finances aren’t had.” That dynamic has practical implications for wealth managers working with younger couples or planning-stage clients. The reluctance to discuss debt openly can delay joint financial planning and complicate conversations around life insurance, estate planning and cash flow management.

Source: Investment News