Financial News

Generation Z and Millennial Debt-Holders Continues to Rise

EPF Last Update: May 28, 2020

According to a recent study by TransUnion, Generation Z debt-holders – adults born after 1995 – saw a significant year-over-year increase in the second-quarter of 2019. The data shows nearly 14 million Gen Z borrowers carry some form of debt, a 29% increase year-over-year.

Generation Z

The number of borrowers carrying automotive debt increased 42% to 4.376 million. For credit cards, the number of borrowers increased 41% to 7.746 million. Mortgage holders more than doubled year-over-year, increasing 112% to 319,000. Personal loans also saw a substantial uptick, with the number of borrowers increasing 45% to 746,000.

The results were driven by eligible Gen Z borrowers entering the marketplace over the last year. Qualified borrowers increased 4.5 million year-over-year to a total of 31.5 million. Over the next three years, researchers expect another 13 million Gen Z borrowers will become eligible for credit.

Analyzing by product, credit cards remain the desired form of debt. Nearly 55% of eligible Gen Z borrowers carry a balance, however, they only make up 5.2% of the overall credit card market. Auto loans rank second at 5.1% of the overall market, while personal loans rank third at 3.8% of the overall market. Conversely – and despite showing the largest year-over-year percentage increase – mortgages remain the least attractive form of debt for Gen Z, as they represent only 0.5% of the overall market.

Matt Komos, vice president of research and consulting at TransUnion said, “Both the newest and oldest members of the credit-eligible Gen Z generation are beginning to enter the credit market for the very first time. The rapid growth in Gen Z credit activity is occurring despite many of these individuals having grown up during the Great Recession. Though the recession itself lasted less than two years, its impact was felt for several years afterward. As we see more members of this group come of age, we naturally expect continued growth in credit activity by Gen Z, which we will monitor closely to compare to the behaviors of previous generations.”


For Millennials, the numbers trended in the same direction. Labelled as adults born between 1981 and 1996, millennial mortgage holders increased 12% year-over-year to 14.37 million. Credit card holders increased 5% to 38.29 million. Personal loan holders increased 14% to 5.61 million and auto loan holders increased 4% to 26.42 million.

Other Generations

For Generation X – adults born between 1965 and 1980 – auto loan holders increased 1% to 26.02 million. Personal loan holders increased 10% to 6.37 million. Credit card holders increased 3% to 38.27 million, while mortgage holders remained flat year-over-year.

For Baby Boomers – adults born between 1944 and 1964 – mortgage holders decreased 4% to 25.34 million and auto loan holders fell 2% to 24.85 million. Bucking the trend, personal loan holders increased 5% to 5.79 million, while credit card holders remained flat year-over-year.

For the Silent Generation – adults born between 1925 and 1943 – the trends were consistent across the board. Mortgage holders decreased 9% to 4.5 million, while auto loan holders also decreased 9% to 4.35 million. Personal loan holders decreased 4% to 1.03 million and credit card holders fell 6% to 15.84 million.

Recommended Articles


Over 70% of The People with Payday Loans Could Qualify for Refinance

EPF September 29, 2020

You are with relatively low credit. You don’t have enough money. You’ve heard that you can’t get a personal loan. And you go and get a payday loan. A common scenario… You are not the only one who do this...


Credit Report Changes in 2020 Could Hurt Your FICO Score

EPF July 8, 2020

FICO 10 T includes another round of changes to how FICO calculates your credit score. It focuses primarily on debt levels during the past two years. If your total debt during the past 24 months is on the upswing or...