Compared to Other Generations, Gen Z Shows the Highest Debt Growth

Generation Z (born 1997-2012) in the United States (US) experienced the highest growth in debt among all generations. According to the Generational Power Index 2021 report, Generation Z's debt burden increased by 67.2% between 2019 and 2020.

Millennials (1981-1996) ranked second with debt growth reaching 11.5%. Debt growth for Generation X (1965-1980) and Baby Boomers (1946-1964) was 3.5% and 0.3%, respectively. Only the Silent Generation (1928-1945) experienced negative debt growth, at -4.6%.

According to Visual Capitalist, the significant growth in Generation Z's debt is attributed to their unemployment rate being twice as high as previous generations due to the COVID-19 pandemic. An Experian report notes that Generation Z's debt growth was driven by a surge in education loans (39%), personal loans (33%), mortgages (19%), and auto loans (12%).

Millennials followed, having started their careers after the 2008 financial crisis. Their debt growth was fueled by increases in education loans (12%), mortgages (6%), auto loans (6%), and personal loans (4%).

Nevertheless, Generation X still holds the largest total debt. Last year, the average debt held by Generation X reached US$140,643.