A new article from Fortune reveals just how significantly Gen Z debt has reshaped an entire generation’s financial priorities. What was once the quintessential ‘American Dream’ of homeownership has been replaced by a more sobering aspiration: simply getting out of debt.
According to the Fortune article, Gen Zers carry an average of more than $94,000 in personal debt—a staggering amount that far exceeds millennials’ $60,000 and Gen X’s $53,000. This crushing debt burden has real consequences: only 3% of all homeowners in the United States are Gen Zers, according to the National Association of Realtors.
The article features insights from Natalia Brown, Chief Compliance and Consumer Affairs Officer with National Debt Relief, who explains how Gen Z debt feels particularly heavy because it hits early in their careers. “Many are entering adulthood with a heavy financial burden—student loans, credit card debt, and rising costs of living,” Brown told Fortune. She warns of a “dangerous snowball effect” created by the combination of credit cards, medical bills, and buy-now-pay-later services.
What makes this Gen Z debt situation even more challenging is the housing market itself. With mortgage rates nearing 7% and median home prices exceeding $403,000, homeownership has become impossible for many young adults earning the national average wage of $66,600.
The Fortune piece offers practical advice for managing Gen Z debt, including prioritizing paying off high-interest credit card debt that often carries rates above 25%. Financial experts recommend that total monthly debt payments should remain below 36% of gross monthly income, giving young adults a framework for organizing their debt payoff strategy.
The article also explores creative solutions, from alternative ownership models like co-ownership and fractional ownership to strategic debt management approaches. However, the underlying message is clear: addressing Gen Z debt has become the prerequisite to achieving traditional financial milestones.
For anyone struggling with similar debt challenges, this Fortune article provides valuable context about how widespread these financial pressures have become, along with expert advice from National Debt Relief and other financial professionals who understand the unique debt burdens facing today’s young adults.
