Gen-Z is slaying with credit card use but why they still need a financial vibe check

Gen-Z is slaying with the use of credit cards as they grow up and enter the workforce in times of high inflation and higher-than-ever affinity towards buying luxury goods and living a lush life. Slay or Slaying is a commonly found expression among Gen-Z individuals to refer to something they excel at.

California-based personal finance company Credit Karma revealed that those born between 1997 and 2012 have the lowest credit card debt among all five generations it collected credit card-related data. The Credit Karma report is based on data collected on January 6 from 78.2 million users ranging from those in the Silent Generation (1928 to 1945) to the Gen-Z. 

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Gen-Z was found to have average credit card debt of $2,781 for the period between October-December 2022, compared to the millennials ($5,898), Gen-X ($8,266), Baby boomers ($7,310) and Silent Generation ($5,601). 

Why Gen-Z need a vibe check on use of credit card?

But it emerged that while Gen-Z has the lowest credit card debt among all generations, the rate at which they are piling up credit card debt (about 6 per cent) is faster than any generation. The report holds significance as the luxury market looks to tap Gen Z spenders as more in the cohort gain spending power amid high inflation.

Source: Wion‍