Tadeo Ruiz Sandoval
speaker
291 appearances
3 recordings
1 series
first heard Aug 2024
last heard Aug 2024
Tadeo Ruiz Sandoval’s voice in public audio — every appearance, attributed to the second.
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Appearances
Like Kyle, Gen Z's debt blew up within the first few years of adulthood, and I asked Credit Karma's Courtney Alev why that is.
So Gen Z is entering a more expensive world.
But how does that impact their debt?
According to the Bureau of Labor Statistics, inflation has increased by a total of around 32% in the last decade.
TransUnion, a credit reporting agency, released a study indicating that inflation is not only raising prices, but it's also increasing debt balances.
One of the biggest problems isn't just that Gen Z's wages aren't keeping up with inflation.
It's that Gen Z's wages aren't keeping up with expenses like debt payments.
TransUnion's study also found that Gen Zers use more of their income to service their debt.
Their debt-to-income ratio is 16% compared to millennials' 12%.
Credit Karma's Courtney Alev talked about this too.
She looked at student loan payments as an example.
When you're tackling big bills like student loans, Courtney says it's harder to pay off other balances you hold, especially when you have to focus on another big expense.
Monthly rent.
Financial planning experts usually recommend 30% of your income go to rent, but...
All these factors, Courtney told me, lead to one thing after student loan and rent payments are made.
If your income doesn't allow for you to afford groceries or other day-to-day expenses, Gen Z will be more likely to pay for those things with credit.
And that's the debt trap.
Now, there's another part of this story that needs to be mentioned.
More on the pandemic's surprising positive economic effects after the break.
According to data from the St.
Showing 241–260 of 291 · page 13 of 15
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