Americans Are Turning To Loans For Everyday Bills–With Gen Z Hit Hardest
Summary
More Americans are using personal loans to pay for everyday bills like groceries, rent, and utilities. Younger people, especially Generation Z, are borrowing the most for these basic expenses due to high costs and economic challenges.Key Facts
- 8.2% of personal loan requests on LendingTree are for everyday bills, up from 3.4% in 2023.
- Everyday bills are now the fourth most common reason people seek personal loans.
- Borrowers using loans for daily expenses request an average of $4,317.
- These borrowers often have lower credit scores, averaging 574 compared to the U.S. average of 713.
- Generation Z (ages 18-29) has the highest share (10.5%) of personal loan requests for everyday bills.
- Millennials follow at 9.3%, Generation X at 6.6%, and Baby Boomers at 5.6%.
- Experts say younger Americans face ongoing economic pressures like high housing costs, student loans, inflation, and rising interest rates.
- Younger generations are more likely to use new financial products like Buy Now, Pay Later and loan apps.
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