45% of Gen Z say their debt increased in the past year, more than any other generation, while Gen X is most likely to be cutting retirement savings to keep up, according to a new Accredited Debt Relief and Money.com survey of 2,000 U.S. adults.

CHICAGO, Sept. 22, 2026 /PRNewswire/ — Debt is reshaping the American dream differently depending on how old you are, according to a new study from Accredited Debt Relief, in partnership with Money. The survey of 2,000 U.S. adults carrying debt found that younger generations are accumulating debt faster and feeling more stress from it, while older generations report more stability but face their own generation-specific pressure points, like Gen X’s retirement savings gap.

Key Findings at a Glance

45% of Gen Z and 39% of millennials say their debt increased over the past 12 months, compared with 34% of Gen X and 30% of baby boomers. Boomers are the only generation more likely to report decreasing debt than increasing debt.

Nearly 6 in 10 Gen Z and millennial respondents say they often or always feel stressed thinking about their debt, compared with 36% of baby boomers.

38% of Gen Z and 31% of millennials say debt has kept them from saving for or buying a home. 41% of Gen X say debt has forced them to cut back on retirement savings — the highest share of any generation.

To manage debt, 55% of all respondents have cut back on eating out, 42% on clothing or personal care, 35% on groceries, and 19% have reduced emergency savings.

78% of respondents point to inflation and 68% to housing costs as major contributors to their debt — both outpacing the 66% who blame their own spending or borrowing decisions.

Younger Generations Are Falling Further Behind and Feeling It More

Rising costs are straining every generation, but the survey found younger Americans are significantly more likely to say their debt is moving in the wrong direction. Forty-five percent of Gen Z and 39% of millennials say they owe more than they did a year ago, compared with 34% of Gen X and 30% of boomers. Boomers were the only generation substantially more likely to report decreasing debt than increasing debt over the same period.

That gap shows up in outlook, too: Fewer than 3 in 10 Gen Zers and millennials say they feel optimistic about paying off their debt, compared with 37% of Gen Xers and nearly half of boomers.

“What stands out here is that debt hits differently in different life stages,” said Bobbi Rebell, Chief Financial Education Advisor at Accredited Debt Relief. “For a 20-something, that can mean delaying a first home or starting a family. For someone in their 50s, it can mean reworking a retirement plan they previously thought was on track. But the common theme is that debt throws off someone’s expectations for where they’d be at certain life stages in terms of goals and milestones.”

What’s Driving the Debt? Inflation and Housing Outrank Personal Spending

Every generation ranked inflation as the top contributor to rising debt, with nearly 8 in 10 respondents saying it had at least a moderate impact on their finances. Two-thirds also cited their own spending decisions and the cost of housing.

Some causes were generation-specific. Sixty-eight percent of millennials pointed to low wages or job loss, and more than half cited the cost of raising children or caring for elderly family members. Gen Z stood out for citing a lack of financial education (51%) and recent changes to laws, taxes and government programs (55%) — likely reflecting recent shifts in federal student loan policy.

Debt By Generation In 2026

• Debt Rose In Past Year: Gen Z 45% | Millennial 39% | Gen X 34% | Boomer 30%
• Often/Always Stressed: Gen Z 60% | Millennial 56% | Gen X 51% | Boomer 36%
• Optimistic On Payoff: Gen Z 28% | Millennial 27% | Gen X 37% | Boomer 48%
• Home Purchase Delayed: Gen Z 38% | Millennial 31% | Gen X 20% | Boomer 10%
• Retirement Saving Cut: Gen Z 24% | Millennial 34% | Gen X 41% | Boomer 26%
• Habits Shaped By Parents: Gen Z 63% | Millennial 60% | Gen X 52% | Boomer 45%
• Want Different Habits Than Parents: Gen Z 67% | Millennial 64% | Gen X 51% | Boomer 39%
• Talk Debt With Family: Gen Z 34% | Millennial 27% | Gen X 24% | Boomer 19%
• Talk Debt With Friends: Gen Z 26% | Millennial 17% | Gen X 10% | Boomer 9%
• Paid Above The Minimum: Gen Z 28% | Millennial 35% | Gen X 41% | Boomer 50%
• Took A Side Gig: Gen Z 27% | Millennial 27% | Gen X 20% | Boomer 9%
• Cause: Low Wages/Layoff: Gen Z 66% | Millennial 68% | Gen X 63% | Boomer 51%
• Cause: No Money Lessons: Gen Z 51% | Millennial 49% | Gen X 41% | Boomer 26%
• Cause: Law Or Tax Change: Gen Z 55% | Millennial 50% | Gen X 40% | Boomer 38%

Source: Accredited Debt Relief and Money.com. Survey conducted by aytm on behalf of Accredited Debt Relief and Money.com in July 2026, among a nationally representative sample of 2,000 U.S. adults who reported having some type of debt in the past year. Generations defined by birth year: baby boomers 1946–1964, Generation X 1965–1980, millennials 1981–1996, Gen Z 1997–2012.

Debt is Delaying or Shrinking Major Life Milestones for Every Generation

The study found debt is interfering with different milestones depending on age. More than a third of Gen Z (38%) and nearly a third of millennials (31%) say debt has kept them from saving for or buying a home. Gen Z also reported debt delaying career moves and plans to start a family.

For Gen X, the pressure is forward-looking: 41% say debt has prevented them from saving for retirement, the highest of any generation. Boomers were far less likely to report debt blocking major milestones, though roughly 1 in 5 said it has forced them to cut spending in retirement.

Debt Habits Are Inherited but Younger Generations Want To Break the Cycle

About 6 in 10 Gen Z and millennial respondents say their parents’ money habits shaped how they think about debt today, and roughly two-thirds of both generations say they want to develop different habits than their parents did.

Younger adults are also more willing to talk about it: Gen Zers are nearly twice as likely as boomers to discuss debt with family (34% vs. 19%) and nearly three times as likely to discuss it with friends (26% vs. 9%). Even so, only half of all respondents say they’ve always been fully honest with family or friends about how much they owe.

How Americans Are Fighting Back Against Debt

Repayment strategy also varies by generation. Half of boomers and 41% of Gen Xers say they paid more than the minimum on their debt in the past year. Younger borrowers were more likely to bring in extra income instead — about a quarter of Gen Z and millennials took on a side gig — while Gen Zers were also more likely to borrow from family, draw down savings or delay payments to manage debt.

“Paying down debt aggressively makes sense, but it shouldn’t come at the cost of having a financial safety net,” Rebell said. “Draining your emergency savings to pay off a balance can create a cycle of debt when the unexpected happens again. The goal is to pay debt off in a way that’s sustainable and protects the borrower from future financial setbacks.”

When Cutting Back Reaches the Essentials

Spending cutbacks were broadly similar across generations, the bigger factor was how much a person’s debt had grown over the past year. Respondents whose debt increased fastest were more likely than any other group to cut back not just on discretionary spending, but on essentials like groceries, utilities, home and car repairs, and health care.

“Cutting back on food delivery or new clothing can be a smart strategy — those are wants,” Rebell said. “But when someone has to cut back on essentials like health care or groceries, or delays repairing a car they need to get to work, that’s a warning sign there’s no room left to maneuver. That’s when a debt relief conversation can help prevent a more urgent financial situation down the road.”

Methodology

This survey was conducted by aytm on behalf of Accredited Debt Relief and Money.com in July 2026 among a nationally representative sample of 2,000 U.S. adults who reported carrying some type of debt in the past year. Generations were defined by birth year: baby boomers (1946–1964), Generation X (1965–1980), millennials (1981–1996) and Gen Z (1997–2012).

About Accredited Debt Relief

Accredited Debt Relief is a leading debt consolidation company that has helped more than 1.3 million clients take meaningful steps toward getting out of debt. Since 2011, the company has resolved more than $15 billion in debt.

Accredited Debt Relief is recognized for its client-first approach, earning multiple ConsumerAffairs Buyer’s Choice Awards for Customer Service, Overall Process and Best Value, and being named Best for Customer Satisfaction by both CBS News MoneyWatch and Bankrate in 2026. The company also maintains an A+ rating with the Better Business Bureau, accreditation from the Association for Consumer Debt Relief (ACDR), and an Excellent Trustpilot rating supported by thousands of five-star reviews.

About Money.com

Money was founded in 1972 as a print magazine and today is read by more than 50 million people each year, and more than 600,000 daily through its newsletters. Money is a part of Money Group, LLC., located in San Juan, Puerto Rico. Its editorial mission is to give readers unbiased insights into the best ways to approach your financial life.

The information on this site is provided as a general resource and does not constitute legal, tax, or financial advice.

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SOURCE Accredited Debt Relief