When you’re just starting out, it’s easy to feel anxiety — or even dread — about financial responsibilities. And one of the biggest financial topics for Gen Z? Debt problems.
Unsecured debts, which include credit card balances, personal loans and “Buy Now, Pay Later” (BNPL) plans are prone to high interest rates. That means they can get out of hand fast — so you need a plan to keep them in check.
3 Debt Traps to Watch Out For
If you know that bills and financial matters make you feel overwhelmed, there are straightforward actions you can take to regain control and feel more secure. And like most things, knowing what to avoid is a good place to start.
| Debt Trap | Explanation | Smart Move |
| Credit Cards | Balances can explode when you only make minimum payments | Aim to pay the entire statement balance on time each month to avoid interest charges and build a positive payment history. |
| Following Trends | Living “your best life” can quickly lead to relying on credit to get by | Make a budget to track income and expenses — keep yourself accountable to living within your means. |
| Buy Now, Pay Later | All those little debts can add up — and become a major issue | Limit BNPL use — if you can’t afford to pay for it in full, then you should probably avoid it, or find an alternative. |
Easy Steps to Take Charge of Your Money
Whether you’re drowning in debt or are anxious to avoid future money issues, here are a few things all members of Gen Z can do with their money:
We know, this is basic — but it’s important! With a budget, you get clear, objective insights into what you’re earning and how you’re spending.
If you use a credit card, make it your goal to always pay the entire monthly bill. Can’t afford to pay it off entirely every month? Then it might be time to evaluate your credit card habits — or make some lifestyle changes that put solvency within reach.
An emergency fund is a pain to build but feels so good to have when you need it. Having even $1,000 saved can be a huge help and keep you from needing to use credit cards when surprises happen.
What if You’re Already Struggling?
Gen Z debt problems are not a minor issue. With the never-ending rise in the cost of rent, groceries and basic necessities, it’s not unusual to meet other people overcoming debt struggles early in life.
The good news is that it’s not too late to start working on yourself. And at Accredited Debt Relief, we think you should consider our approach.
Why Debt Consolidation Works:
- Simplifies Payments: Streamlines credit card bills, personal loans and even things like BNPL into a single, affordable monthly payment.
- Sets You Up for Success: Offers a clear plan and timeline for becoming debt-free.
- Reduces Stress: Relieves your financial burden by lowering monthly payments, giving you more flexibility in your budget — and takes weight off your shoulders.
You’re not alone as a Gen Z person with debt problems: We know how hard it can be to grow into adulthood while being tied up in debt. So connect with Accredited Debt Relief, and see how you can ditch the stress and get back to living life with less stress.