Digging Out of Holiday Debt

Now that the post-holiday bills have started creeping in, many people are quaking in their boots at the thought of hefty bills eating away at their bank account. The pandemic has been a harsh reminder of how fleeting financial security can be, especially for younger generations. 

Although new research shows that credit card debt did not hit the record highs experts in the U.S. originally predicted, this still didn’t stop most consumers from turning to credit cards.

Since more than 50 million Americans found themselves out of work due to government-ordered shutdowns, it’s no surprise to see that Millennials and Gen Z were affected the most. 

A nationwide survey of 1,000 Americans conducted by Debt.com and Florida Atlantic University’s Business and Economics Polling Initiative (FAU BEPI) shows that 55% of Americans under the age of 39 years old charged up large credit bills as a result of income loss.

Millennials reported that 64.5% of their household lost all or some income, whereas Gen Z reported that 81% had lost income. 

As if being hit by a pandemic during some of your most formative years wasn’t enough, 70% of Gen Z respondents said the pandemic was the reason they took on more credit card debt compared to 46% for Millennials. 

The Pandemics Lasting Impact

On top of this, 18-24-year-olds were 45% more likely to carry debt from month-to-month. In comparison, the various other age groups came in at just over 30% when it came to carrying monthly credit card debt. 

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