Debt is no longer just a financial condition for younger Americans – it is a defining feature of how they think, spend, save and relate to one another.
A nationally representative survey of 2,000 U.S. adults conducted by Wakefield Research on behalf of National Debt Relief found that 87% of millennials and 77% of Gen Z currently carry debt.
Credit cards are the leading culprit for both generations, though millennials carry that balance month-to-month at a noticeably higher rate – 56% compared with 37% of Gen Z respondents. More than 7 in 10 millennials cited the rising cost of living and unexpected expenses as the main causes of their debt in the past year, according to the September 30, 2026 National Debt Relief survey.
The scale of that burden is reshaping how younger Americans think about nearly every major life decision – including who they marry and whether to have children at all.
The survey found that nearly half of millennials (49%) rank a potential romantic partner's total debt among the top three things they want to know before entering a serious relationship – ahead of arrest history, religious beliefs and political views. More than 7 in 10 Gen Z respondents (72%) said people should prioritize financial security even if it means forgoing children.
Debt is not simply a balance sheet problem for this demographic – it carries social weight and emotional stigma. Six in 10 millennials said they would rather publicly display their weight than their total debt load.
"This data tells us how deeply money remains tied to how we think others will perceive us," said Timi Joy Jorgensen, Ph.D., a personal finance expert with National Debt Relief. "These negative debt perceptions can lead to feelings of shame and isolation if honest conversations about finances aren't had."
That dynamic has practical implications for wealth managers working with younger couples or planning-stage clients. The reluctance to discuss debt openly can delay joint financial planning and complicate conversations around life insurance, estate planning and cash flow management.
One of the core findings in the National Debt Relief data is the extent to which younger Americans are turning to artificial intelligence for financial guidance rather than to friends, family, or professional advisors.
According to the survey, 69% of millennials and 64% of Gen Z have used AI for advice about a financial challenge or struggle. More telling: 65% of millennials and 53% of Gen Z said they would feel more comfortable discussing financial difficulties with AI than with people close to them.
Speed and the absence of judgment are the primary draws. More than 6 in 10 millennials and Gen Z AI users cited quick answers as a major factor, while a similar proportion valued receiving advice without fear of being assessed or criticized.
Traditional financial resources still rank as the most trusted sources overall – just 22% of millennials and 16% of Gen Z ranked AI as their most trusted resource, according to the survey.
However, the fact that younger clients are pre-processing financial stress through AI before ever reaching a human advisor means the profession may need to reconsider how initial client conversations are structured. The first meeting may now be a second opinion, not a first contact.
Against this backdrop of elevated debt, a separate survey commissioned by PayPal and conducted by Morning Consult among 2,005 U.S. adults from September 2–4, 2026 found that 58% of Americans feel greater financial concern heading into the holidays – yet 64% still expect to spend the same or more than they did last year.
That tension is producing a more deliberate kind of consumer behavior. Setting and sticking to a budget (36%) is now the top strategy shoppers plan to use to manage holiday spending, followed by comparing prices (32%) and holding out for sales or promotions (31%).
More than half of respondents plan to begin shopping before Thanksgiving. Two in five plan to start by the end of October.
According to PayPal's survey, more than half of consumers (55%) have used or considered Buy Now, Pay Later (BNPL). Among that group, three-quarters said they plan to use or are considering using it for holiday purchases. Flexibility and a sense of budget control were each cited as BNPL benefits by 59% of those respondents.
For advisors with clients carrying existing credit card debt, the BNPL trend warrants attention. Approximately 42% of PayPal survey respondents said they would be more likely to make a purchase if BNPL were available – a nudge toward spending that can complicate debt repayment timelines.
The intersection of BNPL adoption and existing unsecured debt loads among millennials is a planning conversation that many clients may not yet be having.
Taken together, these two surveys describe a generation that is financially stressed, emotionally guarded about money, increasingly reliant on technology for guidance, and still willing to spend during the holidays – just more deliberately than before.
For financial planners and wealth managers, the data points toward several areas of focus. Debt – particularly unsecured credit card debt – remains an underserved entry point for building relationships with younger clients. The National Debt Relief survey found that more than a third of millennials (38%) and more than a quarter of Gen Z (27%) with unsecured debt report owing $7,500 or more.
Advisors who can offer structured debt management conversations alongside broader financial planning services may find that millennial and Gen Z clients are more receptive than the data on AI use might initially suggest. The preference for AI guidance often reflects a gap – a lack of accessible, judgment-free professional advice rather than a rejection of human expertise.
Similarly, as BNPL becomes a standard part of how clients manage purchases, advisors may want to address it explicitly in client cash flow reviews – especially for those already carrying credit card balances. Understanding the total liability picture, including BNPL obligations, is becoming a more important part of comprehensive planning.
The holiday season is typically when financial stress becomes most visible. This year, the data suggests that stress is running unusually high – and that younger clients are managing it in ways their advisors may not fully see.
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