A Newsweek poll indicates that Generation Z is burdened with an average personal debt of $94,101, the highest compared to Millennials and Gen X. This debt is primarily from credit cards, affecting their homebuying capabilities. In addition, Gen Z has the highest delinquency rates, complicating mortgage approvals due to lowered credit scores. With homebuying age approaching, the relationship between their high debt and DTI ratios is critical, especially in the context of rising housing costs and mortgage rates.
A recent Newsweek poll reveals Generation Z carries an average personal debt of $94,101, more than Millennials and Gen X, raising concerns over their homebuying potential.
Credit card debt constitutes the most common liability among Gen Z, with 56% holding this debt type, exacerbating their financial challenges in homebuying.
The delinquency rates for Gen Z are concerningly high, as serious delinquencies can hinder mortgage approval, making home ownership more difficult for this generation.
With homebuying age approaching, Gen Z faces a significant hurdle: high debt loads and delinquency rates threaten their financial qualification for mortgages.
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