Current Events > Gen Z racks up credit card debt, misses payments, FUCKED with student loans!

(+) Yeah! (+)

Gen Z is still racking up credit-card debt, and they're starting to have trouble paying it back.

That's according to a new New York Fed report, which found that among US 18 to 29-year-olds, 8.31% of credit-card debt transitioned to serious delinquency which means 90 days or more past due between January and March of this year, up from 5.12% over the prior year period.

The increase marked the highest level since the delinquency transition rate was between 8% and 10% for four consecutive quarters between 2019 and 2020. Prior to that, the rate hadn't been this high since 2010. Inflation and near record high credit card interest rates are two big factors weighing on consumers, according to Bankrate's senior industry analyst Ted Rossman.

If young Americans are struggling to pay down their credit-card debt now, things could get even tougher when student-debt payments resume later this year after an over-three-year pause. As of June 2022, 36% of Gen Zers had student debt, holding an average balance of $20,900, according to the St. Louis Fed.

Due in large part to this pause, only 0.94% of student-debt balances were 90 days or more past due as of the end of March, according to the NY Fed, down from 1.05% a year prior and the over 10% before the pause began in 2020. Currently, those payments are set to resume 60 days after June 30 or 60 days after the Supreme Court issues a final decision on the legality of Biden's broad plan to cancel up to $20,000 in student debt for federal borrowers, whichever happens first.

"The emergency period is over, and we're preparing our borrowers to restart," Education Secretary Miguel Cardona said last week.

Home ownership is going to nosedive in the next two decades

Home ownership is going to nosedive in the next two decades

All those rich boomers are going to just pass their riches to Gen Z, right?

Oh, right, they're giving it all to GOP super-PACs

Just in time for some uber capitalist even worse version of renting to come to the "rescue."

Nah they already set up trust funds in their name but Gen Z fucked up their nest egg

Oh, right, they're giving it all to GOP super-PACs

Just in time for some uber capitalist even worse version of renting to come to the "rescue."

Home ownership is going to nosedive in the next two decades

All the homes will be owned, but no one will be able to afford to live in them.