Ted Rossman: Gen Z Carries More Debt Than Millennials Did at Same Age

Young adults in the U.S. are taking on heavier debt loads than the generation before them did at the same point in life, a pattern showing up in both lending data and credit counseling intake. TransUnion figures cited by Ted Rossman, a credit counseling expert at Money Management International, show Gen Z balances exceeding Millennials' levels from the same age bracket, even after accounting for inflation.

The shift has arrived alongside rising student loan obligations, elevated rents and the spread of buy now, pay later installment plans, which Rossman said leave many in their 20s with little savings cushion. Money Management International, a nonprofit counseling agency, recorded a 35% increase in requests for help from Gen Z clients over the past year, and debt loads among those clients now sit about 12% higher than a year earlier.

Rossman attributes part of the gap to the expense of establishing a household. "You have student loans, you have high housing costs. Those household formation years are very expensive," he said. "So GenZer's actually have more debt than Millennials did at the same age, even adjusted for inflation according to TransUnion."

His guidance for borrowers starts with tracking a budget and watching installment plan usage. "It's very popular among people in their 20's, but it's still debt," Rossman said, adding that scheduled payments under such plans can compound if borrowers overspend. He also flagged credit card interest rates, which he said often sit in the 20% range, and noted that people who feel overwhelmed can seek assistance.

The reporting draws on TransUnion data and Money Management International's counseling figures as of Oct. 29.