Nearly 9 in 10 Millennials and Almost 8 in 10 Gen Z Carry Debt, Reshaping Their Approach to Money, Love and the Future

National Debt Relief research finds younger generations are more likely than older Americans to confide in AI over loved ones for financial guidance, to prioritize financial security over having kids, and to feel a debt-free life is out of reach

NEW YORK, Sept. 30, 2026 /PRNewswire/ -- National Debt Relief, the industry leader in debt settlement and provider of a top-rated debt relief solution in the U.S., today released findings from a new survey conducted in partnership with Wakefield Research, revealing how widespread Gen Z and millennial debt is influencing not only how they manage financial challenges, but also their relationships, spending behaviors and major life decisions.

The survey of 2,000 nationally representative U.S. adults included responses from 550 millennial adults with oversample interviews conducted to increase the total number of Gen Z respondents to 500. It found 87% of millennials as well as 77% of Gen Z currently carry debt. The findings point to younger generations navigating that financial pressure in new and sometimes risky ways, from seeking judgment-free guidance through AI to gambling in hopes of paying off debt.

Key Findings:

• 73% of millennials and 60% of Gen Z carry unsecured debt, with credit card debt as the most common.
• Around 7 in 10 (69%) millennials and more than 6 in 10 (64%) Gen Zers have used AI for advice about their financial challenges.
• 65% of millennials and 53% of Gen Z would feel more comfortable discussing financial struggles with AI than the people closest to them.
• Almost two-thirds of Gen Z (65%) and half of millennials (49%) who regularly gamble have done so in an attempt to pay off debt.
• Around 7 in 10 millennials (71%) and Gen Z (69%) with debt say convenience purchases have contributed to what they owe.
• More than 7 in 10 Gen Zers (72%) say people should prioritize financial security even if it means not having children.
• Nearly half of millennials (49%) rank amount of debt among the top three things they want to know about a potential romantic partner, over arrest history, religious beliefs and political views.

Financial Mindsets & Behaviors: Why Does Debt Feel Unavoidable?

Rising everyday costs and unplanned financial pressures are making already tight budgets harder to manage for millennials and Gen Z. Together, these pressures are driving younger generations further into debt and clouding their financial futures.

• Unsecured Debt Is Widespread for Younger Generations: Unsecured debt is carried by more than 7 in 10 (73%) millennials and 6 in 10 (60%) Gen Zers, compared to fewer than half of boomers (46%).
• Credit Card Debt Is Most Common: Millennials and Gen Z both cited credit cards as their most common debt sources, though a significantly greater share of millennials are carrying that debt month-to-month (56% vs. 37%).
• Rising Costs, Unexpected Expenses Drive Debt Loads: The rising cost of living and unplanned life events, such as an unexpected medical bill, emergency home or car repair, or sudden loss of income, are putting significant pressure on millennials, who cited economic factors (49%) as well as unexpected expenses (49%) as the most common causes for their debt in the last year; while Gen Z pointed to unexpected expenses (40%) as the leading cause for theirs.
• Everyday Conveniences Are Adding Up: About 7 in 10 millennials and Gen Zers (71% and 69% respectively) with debt say convenience purchases like subscriptions, food delivery and social media shopping have contributed to what they owe, compared with 51% of Gen X and 33% of boomers.
• "Treat Yourself" Spending Can Outweigh Affordability: The urge to "treat yourself" can outweigh financial constraints, with 72% of millennials and 64% of Gen Z admitting they have bought something they felt they deserved even when they couldn't afford it at the time, compared to just 36% of boomers.
• A Debt-Free Future Feels Out of Reach: Many millennials have changing expectations around financial stability altogether, with nearly half (46%) saying a debt-free life is not a reality for them, compared with one third (33%) of Gen Z.

AI & Financial Decision-Making: Is AI the New Financial Confidant?

Younger Americans are increasingly turning to AI as a private, on-demand source of money guidance that does not judge their finances the way others in their life might. This behavioral shift is changing how younger generations understand and make decisions about their finances.

• AI Is Becoming a Go-To Source for Financial Advice: AI is already part of financial decision making for most younger Americans, with 69% of millennials and 64% of Gen Z report having used it for advice about a financial challenge or struggle, compared with 45% of Gen X and 23% of boomers.
• Quick Answers Are a Major Draw: Speed is a major draw, with more than 6 in 10 millennials (62%) and Gen Z (61%) AI users turning to it for quick answers to financial questions.
• Judgment-Free Guidance Matters: Receiving judgement-free advice is also a major draw for Gen Z (42%) and millennials (39%) to use AI, level with creating a budget or financial plan (44% and 39% respectively).
• AI Can Feel Easier Than Talking to Friends and Family: AI's approachability led 65% of millennials and 53% of Gen Z to say they would feel more comfortable discussing financial struggles with AI than with the people closest to them.
• AI Is Influencing Major Purchases: AI's influence is extending beyond advice and into spending decisions, with 46% of millennials and 35% of Gen Z saying it has encouraged them to make a major purchase they were uncertain about.
• Traditional Financial Resources Still Lead on Trust: While more younger Americans are using AI for financial guidance, traditional financial resources still rank as their most trusted resource. Just 22% of millennials and 16% of Gen Z rank AI as their most trusted source, compared with 59% and 69%, respectively, who rank traditional sources first.

"The data shows younger Americans are willing to seek help with their finances, but where they turn for that help is changing," said Cathleen Bell, Vice President, Customer Research & Insights, National Debt Relief. "At National Debt Relief, we know AI can be a useful starting point, but navigating debt often requires trusted, professional guidance to better understand the available options. We believe that having personalized advice and a clear plan better helps someone in overwhelming debt gain confidence and feel supported to take action towards getting out of debt."

Financial Risk-Taking: Are Younger Americans Gambling Their Way Out of Debt?

Millennials and Gen Z are participating in sports betting, prediction markets and other alternative financial activities at significant rates. For many, these activities aren't simply entertainment or forms of investment; they are strategies to ease financial pressure. With others borrowing to gamble as well, younger generations risk falling into a debt cycle.

• Millennials Are Most Likely to Participate: More than 6 in 10 millennials (62%) report regularly engaging in at least one activity such as sports betting, casino gambling, fantasy sports, prediction markets, day trading or the lottery, compared with a little less than half of Gen Z (45%).
• Debt Is Motivating Financial Risk-Taking: Among those who regularly participate in these activities, 65% of Gen Z and 49% of millennials say they have gambled, traded or participated in similar activities in an attempt to pay off debt, versus 39% of Gen X and 19% of boomers.

Money, Perceptions & The Future: How Is Debt Shaping Younger Americans' Personal Lives?

For Gen Z and millennials, the fear of being judged for their debt can weigh just as heavily as the debt itself. Younger Americans' wariness of financial challenges is also impacting their perceptions of peers and potential romantic partners, as well as their family planning priorities.

• Debt Can Feel More Personal Than Weight: Debt can be more sensitive to share than other deeply personal information, with six in 10 millennials (60%) and an almost equal share of Gen Z (59%) saying they would rather publicly display their weight than their total debt.
• Debt Matters in Dating: For millennials, a potential romantic partner's debt can matter more than traditionally significant compatibility questions, with almost half (49%) ranking debt among the top three things they would want to know before entering a serious relationship, ahead of arrest history (48%), religious beliefs (47%) and political views (37%).
• Gen Z Considers Debt in Relationships Too: Gen Z considers other compatibility factors more heavily, but 4 in 10 (40%) still rank a potential partner's debt among the top three things they would want to know before entering a serious relationship.
• Financial Security Prioritized Over Having Children: More than 7 in 10 (72%) Gen Zers said people should prioritize financial security even if it means not having children, compared with 54% of millennials.
• Venmo Habits Are Being Judged: 25% of millennials say they've formed an opinion about someone's financial habits based on their Venmo transactions, compared with 17% of Gen Z and 15% of Americans overall.

"This data tells us how deeply money remains tied to how we think others will perceive us, and for younger generations, debt holds a sizable stigma," said Timi Joy Jorgensen, Ph.D., "The Joyful Money Doctor" and 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. No financial situation is the same, and for younger adults entering relationships, talking openly about finances early can shine a light on circumstances that could lead to debt and replace unfair assumptions with an honest understanding of financial compatibility."

How Can Debt Settlement Help Younger Americans Build Financial Stability?

More than a third of millennials (38%) and over a quarter of Gen Zers (27%) with unsecured debt (e.g. credit cards, medical bills, personal loans, Buy Now, Pay Later) reported owing $7,500 or more. For consumers struggling with $7,500 or more of unsecured debt, debt settlement is an option worth considering.

"Debt can feel overwhelming, especially for younger adults just starting out and developing their independence while balancing rising everyday costs and growing economic pressures," said Bell. "At National Debt Relief, we help people take that first step by understanding the debt they're carrying and the options available to address it. For those who may be a fit for debt settlement, that means developing a plan that works with their financial situation and budget. Asking for help isn't a sign of financial failure; it can be the first step toward regaining control and moving forward with confidence."

National Debt Relief specializes in debt settlement, a process in which experienced negotiators work directly with creditors on behalf of clients to reduce the total amount owed on eligible unsecured debts. The National Debt Relief program is designed to help consumers resolve debt faster than they could on their own through minimum payments and avoid bankruptcy. Learn more at NationalDebtRelief.com or call 1-800-718-0487 for a free, no-obligation consultation with a certified debt specialist.

About National Debt Relief

Since 2009, National Debt Relief has helped people face their debt with confidence. As the debt settlement industry leader, we make the process of getting out of debt less overwhelming and more empowering. National Debt Relief is a Better Business Bureau A+ accredited business, Forbes Advisor's top-rated debt relief company for four consecutive years and is the most highly reviewed and rated debt settlement company on ConsumerAffairs. We have enrolled over 1.5 million people into our program, helping them take meaningful steps toward resolving their debt so they can feel financially and emotionally whole again. Learn more at NationalDebtRelief.com.

Survey Methodology

The National Debt Relief survey was conducted by Wakefield Research through a custom online survey of 2,000 nationally representative U.S. adults ages 18 and older. The survey included twenty (20) content questions, along with custom screeners and demographic questions. It included responses from 550 millennial adults with oversample interviews conducted to increase the total number of Gen Z respondents to 500.

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SOURCE National Debt Relief