Gen Z borrows more on cards and pay-later plans but wants to invest more, Deloitte finds
Representative image: jarmoluk / Pixabay
Deloitte research released October 8, 2026 shows US Gen Z carrying more card debt and using buy now, pay later more, while planning to invest more in stocks.
What Happened
Young adults in the United States are carrying more credit card debt and using "buy now, pay later" plans more than older generations, while also planning to put more of their savings into shares and retirement funds, according to research published by the consulting firm Deloitte on Thursday, October 8, 2026. The findings come from Deloitte's ConsumerSignals research, which surveys about 1,000 US adults each month, and cover data from July 2022 to June 2026. Deloitte defines Gen Z in the study as people aged 18 to 29.
Key Facts
- The share of Gen Z borrowers who carry a credit card balance for more than a month rose by nearly 20% between the third quarter of 2023 and the second quarter of 2026, Deloitte said; the share fell among other generations.
- Use of buy now, pay later (BNPL) among Gen Z reached 22.8% in the first quarter of 2026, the highest for any generation in three years of data.
- Gen Z BNPL use eased to 17.6% in the second quarter of 2026.
- Gen Z respondents plan to put a larger share of their savings into stocks, mutual funds and retirement plans than they did three years ago.
- Millennials, Gen X and baby boomers, by contrast, plan to move more of their money into cash.
- The research is based on monthly survey waves of about 1,000 US adults between July 2022 and June 2026.
Why It Matters
The study captures a tension many young earners will recognise, wherever they live: wanting to build wealth early while juggling bills, rent and lifestyle spending in the present. Gen Z in the US is doing both at once, borrowing on cards and instalment plans while also trying to invest for the future. Deloitte notes that Gen Z is not the first generation to juggle debt and wealth-building goals, but the pattern is sharper for this age group than for older ones in its data.
Buy now, pay later deserves particular attention. These plans split a purchase into a few instalments, often with no interest if every payment is made on time. They are easy to sign up for inside shopping apps, which is part of their appeal for young buyers. The risk is that several small plans running at once can add up to a large monthly commitment that is easy to lose track of, and missed payments can bring fees and hurt a person's credit record.
Carrying a credit card balance from month to month is usually the most expensive kind of borrowing an ordinary person does, because interest is charged on the unpaid amount. Investing in shares while paying high card interest can mean the cost of the debt eats into, or exceeds, what the investments earn.
For young Indians, the findings are a useful mirror rather than a direct comparison, because the survey covers only the United States. Credit cards, instalment plans offered at checkout and app-based investing are all now easy to access for young earners in India too, and the same basic trade-offs apply.
| Measure | Finding |
|---|---|
| Gen Z carrying card balances | Up nearly 20%, Q3 2023 to Q2 2026 |
| Gen Z BNPL use, Q1 2026 | 22.8%, highest of any generation |
| Gen Z BNPL use, Q2 2026 | 17.6% |
| Savings plans | Gen Z shifting more to stocks and retirement; older groups to cash |
Impact
Short-term: The figures add to a debate among lenders and regulators about how much young consumers rely on revolving credit and instalment plans.
Long-term: If young adults keep investing early while also controlling high-interest debt, they could build wealth sooner than older generations did; if debt keeps rising, it may limit what they can save.
Who is affected: Young earners and students who use credit cards and pay-later plans, banks and fintech lenders, and investment platforms that court first-time investors.
Key Takeaway
Deloitte's October 8, 2026 research shows US Gen Z borrowing more on cards and pay-later plans even as it plans to invest more, a reminder that paying off expensive debt comes before chasing returns.
Questions and Answers
What did Deloitte's Gen Z research find?
It found that more US Gen Z borrowers are carrying credit card balances and that their use of buy now, pay later peaked at 22.8% in early 2026, while they also plan to put more savings into stocks and retirement plans.
Who counts as Gen Z in this study?
Deloitte's research looks at adults aged 18 to 29 in the United States.
Does this survey include Indian consumers?
No. The ConsumerSignals data used here comes from about 1,000 US adults surveyed each month, so it describes American habits only.
Should a young person invest while carrying credit card debt?
Card interest is usually high, so many advisers suggest clearing revolving card balances first, since the interest saved is often more than an investment would reliably earn.
Disclaimer: Prepared by the Peepals newsroom from publicly available sources with AI assistance. Information is accurate to the best of our knowledge at the time of publication and may change. Images may be representative. Not professional advice. Report an error via our contact page.
Sourced and fact-checked by the Peepals Global Editorial Team
Reported, fact-checked and published by the Peepals Global Editorial Team.
