Gen Z could be on track to become the richest generation in history. But for now, they are struggling to pay off their credit card bills.<\/p>\n
According to a September study examining the revolving cycle of debt from credit cards by Freedom Debt Relief, a debt settlement company, Gen Z leaned<\/a> hardest on minimum-only payments (59%) and boomers the least (28%), against 50% of cardholders overall. <\/p>\n And that has caused significant damage to their mental health, based on the report: 51% of Gen Z feel embarrassed or ashamed of how much credit card debt they carry.<\/p>\n \u201cThe most common barrier was money, with 37% saying they didn\u2019t earn enough to pay more than the minimum,\u201d the study read. \u201cBut the reasons were more personal nearly as often: about 3 in 10 (30%) feel they should handle the debt on their own.\u201d<\/p>\n Of course, Gen Zers are still in the early stages of their careers and have yet to enter their prime earnings years. So they are more likely to have trouble managing their debt.<\/p>\n Still, after digging a deep hole for themselves, Gen Z risks getting stuck, and they are in the dark. Just 20% of Gen Z knew their exact interest rate on their credit debt\u2014the lowest of any generation and well below baby boomers.<\/p>\n \u201cBehind the balances is a cycle that is easy to fall into and hard to break alone,\u201d the report read. \u201cMany cardholders pay down what they owe only for it to climb again, and most carry that stress quietly.\u201d<\/p>\n Caught between future wealth and present debt<\/p>\n The findings show a tension at the heart of Gen Z\u2019s economic outlook: the generation\u2019s long-term financial prospects show some hope, but they have to make do with what they have now to cover their bills.<\/p>\n Gen Z\u2019s wealth could<\/a> amass to $36 trillion by 2030 and $74 trillion by 2040, according<\/a> to a 2025 Bank of America<\/a> report.<\/p>\n But the wealth projections also have some caveats. A lot of the anticipated wealth accumulation depends on the \u201cgreat wealth transfer\u201d from older generations. In addition, the distribution of that wealth is uneven as certain households own substantial property and investment portfolios while others don\u2019t.<\/p>\n