Money Wellness
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category icondebts
calendar icon21 Mar 2024

Gen Z and debt

British Gen Z adults owe an average of £5,069 debt, credit management company Lowell found.

13% owe more than £10,000, and 61% of people said financial decisions they’ve made are already affecting their future goals.

The most common debts were credit cards, followed by buy now, pay later loans.

 John Pears UK CEO of Lowell UK said “Many young people have not had the financial education needed to successfully manage their financial health, resulting in many having already experienced problem debt.”

It's not all bleak for Gen Z, though. As we all tackle the cost of living crisis, many Gen Zer’s are turning to social media for financial literacy.

Thought piece by advertising agency Truant comments that the rise of #FinanceTok on social media app TikTok and financial influencers across other apps is making a change for Gen Z and financial literacy:

Amidst the cacophony of influencers pushing for overconsumption, FinanceTok emerges as a subculture empowering gen-Z to break free from the materialistic chains and embark on a journey of financial literacy and independence.

The movement is particularly crucial for women and people of colour who have historically been paid less than their white male counterparts for the same roles. By lifting the veil on earnings, rent, and monthly outgoings, these influencers are reshaping the discourse, breaking down barriers to open discussions about financial privacy, which has always been veiled as a touchy and inappropriate topic of conversation. Money is a personal matter, and this has historically left younger generations, especially those disenfranchised by wider society, having to quietly live with pay discrepancy and money mismanagement.”

 If you’re a Gen Z’er and in debt, we can help.

Our free debt advice is available to people all over the UK, online or over the phone. We’ll go through your finances in detail and explain your options. You might be surprised at the range of help available. We can:

  • check you’re getting all the benefits you’re entitled to
  • help you with budgeting
  • advise you on debt solutions

 There are various debt solutions available that reduce your monthly debt repayments and even write off some of your debt. We’ll let you know if any of them are suitable for you. All our advice is free. Some debt solutions are free, while others come with a fee. We’ll give you all the information you need to make an informed decision and, if we recommend a debt solution and you decide to go ahead, we’ll help get it set up.

You should also make sure you’re getting all the benefits you may be entitled to.

 

Avatar of Lydia Bell-Jones

Lydia Bell-Jones

With a background in banking, Lydia has been writing professionally for over five years. She is passionate about helping people improve their personal finances and has a particular interest in the connection between money and mental health.

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