Gen-Z is slaying with the use of credit cards as they grow up and enter the workforce in times of high inflation and higher-than-ever affinity towards buying luxury goods and living a lush life. Slay or Slaying is a commonly found expression among Gen-Z individuals to refer to something they excel at.
California-based personal finance company Credit Karma revealed that those born between 1997 and 2012 have the lowest credit card debt among all five generations it collected credit card-related data. The Credit Karma report is based on data collected on January 6 from 78.2 million users ranging from those in the Silent Generation (1928 to 1945) to the Gen-Z.
Gen-Z was found to have average credit card debt of $2,781 for the period between October-December 2022, compared to the millennials ($5,898), Gen-X ($8,266), Baby boomers ($7,310) and Silent Generation ($5,601).
Why Gen-Z need a vibe check on use of credit card?
But it emerged that while Gen-Z has the lowest credit card debt among all generations, the rate at which they are piling up credit card debt (about 6 per cent) is faster than any generation. The report holds significance as the luxury market looks to tap Gen Z spenders as more in the cohort gain spending power amid high inflation.
ALSO WATCH | China tightens rules on $1.3 trillion credit card business
The report found that while Gen Z has a small amount of total debt among all generations, they are the only generation to see an increase in past-due accounts. This includes credit card, mortgage, student loans, medical loans, auto lease, or auto loan accounts that are overdue by more than 30 days, per Credit Karma. So all added up together, the picture isn’t a shiny one.
You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.
For all the latest business News Click Here
