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Gen Z holds the lowest average credit card debt among working generations, but reasons go beyond money management.

Market News
18 Aug 2026
Fool - Investing News
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Gen Z has the lowest average credit card debt at about $3,493, roughly half that of millennials, due to factors beyond just financial discipline. Their lower debt is partly because they have smaller credit limits, many are not yet in the credit system, and a significant number prefer debit cards or use buy now, pay later (BNPL) plans which often don't appear as credit card debt. Despite this, credit card debt is rising for all generations, including Gen Z, whose balances have increased 87% since 2016. Understanding these nuances is important as credit habits evolve and debt levels grow.

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