Gen Z faces rising credit card debt and sustainability expectations

Recent data highlights two significant challenges facing the Gen Z demographic. In the United States, Gen Z adults aged 18–29 have seen a 19% increase in revolving credit card debt between Q3 2023 and Q2 2026, a trend that contrasts with other generations like Baby Boomers, whose debt levels decreased by nearly 26% during the same period.

Financial experts note that with average credit card interest rates around 21%, high interest costs and minimum payments can cause debt to grow rapidly, hindering long-term financial goals. This trend is exacerbated by rising costs for housing and food, as well as significant student loan obligations.

Simultaneously, Gen Z is driving a shift in corporate responsibility. Research indicates that 87% of this demographic believes businesses have a responsibility to address environmental and social issues. Furthermore, 74% of Gen Z consumers have stopped purchasing from brands due to a lack of environmental or social action, and 73% expressed a willingness to pay more for products with verified sustainability certifications.