Credit Card Debt Risks for Gen Z: 48% Rely on Credit Cards

AI Summary

Recent FICO data indicates that 48% of Gen Z are using credit cards to manage expenses amid rising costs and job losses. As credit card debt balances reach record highs, Gen Z opens credit cards at a higher rate than previous generations. With average credit card APRs exceeding 21%, a $2,000 balance could accrue over $2,800 in interest if only minimum payments are made. Financial advisors warn that reliance on 0% APR cards without solid cash flow planning may lead to long-term debt issues.