Gen Z may not be swiping on dating apps – but they are swiping their credit cards.
A new study from the Federal Reserve Bank of New York found that 15% of Gen Zers who have credit cards have maxed them out. To compare, only about 5% of Baby Boomers and 9.6% of Generation Xers have hit the credit limits on their cards.
But it's not just frivolous spending that is causing the credit issue for Gen Zers. Many of these young borrowers are using their cards for day-to-day expenses. "It is worrisome that so many Gen Zers are falling behind," said Ted Rossman, senior industry analyst at Bankrate.com. "We're seeing more people financing daily essentials such as groceries and gas, and this can be a tough cycle to break."