America, we have a debt crisis on our hands—and it’s not the one you usually hear about on cable news. While President Trump has brought back manufacturing, secured our border, and ended foreign conflicts, there’s another battle brewing right here at home: Generation Z drowning in debt.
According to a shocking new report by Vola Finance, a staggering 63 percent of Gen Z users already have delinquencies on their financial records. Compare that to just 37 percent delinquency among older generations, and the picture becomes clear: young Americans are facing a financial crisis unlike anything we’ve seen before.
Let’s break down the numbers. Generation Z, born between 1997 and 2012, is now entering adulthood with an average personal debt of $94,101—far surpassing millennials ($59,181) and Gen X ($53,255), according to a recent Newsweek poll conducted alongside Talker Research. They’re not just behind; they’re buried under a mountain of financial burdens from day one.
This isn’t just about youthful irresponsibility or careless spending habits. As Michael Ryan, the financial expert behind MichaelRyanMoney.com, explained to Newsweek, “Millennials had the Great Recession; Gen Z got the pandemic, inflation, and a housing crisis.” Ryan points out that Gen Z also grew up with parents who handled most of their financial decisions, leaving them ill-equipped to navigate the real-world consequences of debt. Gen Z is learning money management “on the fly. Often the hard way.”
But there’s even more to the story. Bryan Driscoll, an HR consultant specializing in generational differences, told Newsweek that Gen Z’s debt isn’t the result of mere reckless spending. It’s a symptom of “an economy that’s more hostile, more extractive, and far less forgiving.” Driscoll added, “Long-term, it means delayed or never-achieved milestones: fewer homeowners, fewer families, and growing skepticism toward traditional financial structures.”
The rise in popularity of cash advance apps, offering quick fixes with no credit checks, has only exacerbated the situation. Drew Powers, founder of Powers Financial Group, warned Newsweek that these platforms are precisely targeting those least prepared to handle debt—young, low-income users with limited financial literacy. “Gen Z is learning the hard way how difficult it is to manage debt,” Powers said, noting these apps report to credit bureaus, further damaging young people’s credit scores.
Financial literacy instructor Alex Beene from the University of Tennessee at Martin didn’t mince words when he advised, “If you find yourself with cash advance debt, pay it off immediately. The immediate boost of cash isn’t worth the financial headaches it produces later.”
Let’s be clear: this is not about giving young people a free pass. Conservatives understand the value of personal responsibility. However, we must also recognize that these are Americans coming of age in an era of unprecedented economic shifts. It’s an economy shaped by the failed policies of the Biden era—years of reckless spending, runaway inflation, and a skyrocketing cost of living.
What does this mean for America’s future? Michael Ryan warns, “A generation that can’t build wealth is a generation that can’t drive the economy forward.” He’s right. Without intervention, we risk seeing lower homeownership rates, delayed family formation, and an entire generation skeptical of capitalism itself. That’s not a recipe for American greatness.
As conservatives, we support President Trump’s vision of an America where every generation has the opportunity to succeed through hard work and personal responsibility. To achieve that vision, financial education must become an essential part of our education reform agenda. Young Americans need the tools to manage money wisely, avoid predatory lending, and build secure financial futures.
Let’s not allow a generation of Americans to start adulthood shackled by debt and economic hopelessness. It’s time to ensure that the promise of the American Dream remains alive—not just for some—but for all generations to come.
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