A national study found higher borrowing balances among young Gen Z consumers than Millennials at the same age. California research shows why household wealth matters, too.
Getting a paycheck and getting ahead aren’t always the same thing. A car payment, credit card bill or unexpected medical expense can leave less money for a first apartment, emergency savings or next month’s necessities.
Research on Gen Z debt shows why those payments deserve attention. A national TransUnion study published in 2024 found that young borrowers carried higher balances on several credit products than Millennials did at the same age, even after adjusting for inflation.
For Los Angeles readers, California’s household wealth gap adds important context: the same bill can be harder to manage when there are fewer savings or assets to fall back on. These studies measure different populations, however. They are not a combined estimate of debt among young Latino Angelenos.
What the Gen Z comparison shows
TransUnion’s 2024 study of young consumers compared people ages 22 to 24 in late 2023 with Millennials of the same age in late 2013.
Average credit card balances were $2,834 for the Gen Z group, compared with an inflation-adjusted $2,248 for Millennials, about 26% higher. Average auto loan balances were $21,767 versus $19,043.
Among credit-active consumers in those age groups, 84% of Gen Z had a general-purpose credit card, compared with 61% of Millennials. That does not mean 84% of all young adults had cards.
TransUnion also found higher delinquency rates on newly opened credit cards, auto loans and personal loans during the following two years. These findings describe a historical national comparison, not a measurement of every Gen Z adult’s finances in 2026.
Borrowing itself doesn’t establish financial trouble. A loan may pay for transportation needed for work. The concern is whether payments leave enough income for necessities and a reserve for the next unexpected expense.
Why savings change the picture
A May 2025 Public Policy Institute of California report found that 59% of Latino households carried unsecured debt, compared with about 45% of white and Asian households. Unsecured debt includes borrowing such as credit cards, student loans and medical debt.
Median net worth was approximately $62,000 among Latino households, compared with around $530,000 among white and Asian households. Net worth means assets minus debts; it is not the amount available in a checking account.
Those estimates describe wealth held in December 2021, adjusted to 2023 dollars. They cover households across age groups, not young adults alone.
The distinction is practical. Two people can owe the same amount and have very different room to manage it. One may have savings available when work hours fall. Another may need credit to cover the gap.
The statewide figures don’t tell us whether a particular young adult can turn to relatives for help. They do show why debt payments and income need to be considered together when discussing financial security.
Medical bills add another pressure locally. A June 2026 update using California Health Interview Survey data estimated that approximately 778,000 Los Angeles County adults had medical debt in 2024, totaling more than $2.8 billion.
About 10.8% of Latino adults reported medical debt, compared with 13% of Black adults, 9.6% of white adults and 7.3% of Asian adults. These estimates cover adults broadly, rather than Latino Gen Z specifically. The report identifies difficulty paying for food and housing and delayed medical care among medical debt’s consequences. June 2026
Where to get help when payments don’t fit
For credit cards, the Consumer Financial Protection Bureau recommends contacting the issuer immediately if you cannot afford the minimum payment. Explain what you can pay, why you need a change and how long you expect to need it. Assistance depends on the issuer and circumstances.
Credit counseling may also help. Before enrolling, ask what services are provided and what fees apply. Consumer Financial Protection Bureau
For hospital bills, ask about financial assistance or discounted care. California’s hospital billing guidance explains eligibility and how to challenge certain assistance decisions. Some insured patients with high medical costs can qualify, too.
A debt balance alone cannot tell someone whether they’re getting ahead. The clearer picture includes the payment, the interest, the income available to cover it and the savings left afterward. For young adults building an independent life, those details determine how much breathing room remains when something goes wrong.
