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Gen Z are skewing data on household debt, as young buyers continue to lean significantly more on credit facilities than their elders.
We’re here for a good time, not a long time.
In the UK, debts are rising at their fastest pace for seven months fuelled heavily by an increase in borrowing from Gen Z. Is this young people being irresponsible? Does it speak more to economic strife in the UK? Or is it a combination of both?
Let’s start with the data first.
In February 2026, debt rose across all age groups aside from the 25s to 34s (shout out to my kin). According to data published by the S&P Global Consumer Sentiment Index, those who borrowed the most and racked up far and away the biggest bill were the 18s to 24s.
This is heavily influenced by a UK job market in dire straits. In the last hour, government figures have revealed that the nation’s unemployment rate has hit a near five-year high. This includes 16.1% of 16 to 24s – the worst figures for a decade – and the most stark numbers for 25s to 34s since 2017 (4.7%).
Overall, the number of young Brits currently out of work has climbed above Europe for the first time since records began in 2000, according to data from the OECD. Cash availability and savings have also dipped sharply, with 19% of citizens having less than £1,000 tucked away in emergency savings.
Given living in the UK is becoming increasingly expensive, it’s no surprise that people are resigned to borrowing capital more often and in larger sums. Despite economists forecasting that inflation will trend downward this year, cost of living remains a major hinderance.
Average rent is up, calls to increase the threshold for student loans have been ignored, and roughly 79% of Gen Zers feel completely priced out of getting on the property ladder. Single ‘big ticket’ purchases of items like appliances are way down, and we’re increasingly hearing that young people are writing off having children.
Under such oppressive circumstances, it’s hard to remain glass half full, but to Gen Z, that doesn’t necessarily matter. The cohort’s inherent cynicism is both a curse and a gift, in that they’re determined to get a taste of the lives they want, even if they can’t necessarily afford them.
Shocking Saturday Stat:
41% of Gen Z borrowed money for groceries or rent in the last year 😳 pic.twitter.com/Kq0wa9qNeI
— Amy Nixon (@texasrunnerDFW) June 28, 2025
