Debt has become a defining force in the financial lives of younger Americans, influencing everything from romantic relationships to holiday shopping. Two new surveys—one from National Debt Relief and another from PayPal—paint a detailed picture of how millennials and Gen Z are navigating financial stress, and what that means for advisors.
The National Debt Relief survey, conducted by Wakefield Research among 2,000 U.S. adults and released on September 30, 2026, found that 87% of millennials and 77% of Gen Z carry debt. Credit cards are the primary source, with 56% of millennials carrying a balance month-to-month versus 37% of Gen Z. More than 70% of millennials attribute their debt to rising living costs and unexpected expenses.
This debt load is shaping major life decisions. Nearly half of millennials (49%) say a potential partner's total debt is among the top three things they want to know before entering a serious relationship—ahead of arrest history, religion, or politics. Meanwhile, 72% of Gen Z respondents believe people should prioritize financial security even if it means forgoing children. The emotional weight is significant: 60% of millennials would rather reveal their weight than their total debt.
"Money remains deeply tied to how we think others perceive us," said Timi Joy Jorgensen, Ph.D., a personal finance expert at National Debt Relief. "These negative perceptions can lead to shame and isolation if honest conversations aren't had." For advisors, this reluctance to discuss debt openly can delay joint planning and complicate conversations about insurance, estate planning, and cash flow.
Younger clients are increasingly turning to artificial intelligence for financial guidance. The survey found that 69% of millennials and 64% of Gen Z have used AI for advice on a financial challenge. More tellingly, 65% of millennials and 53% of Gen Z say they'd feel more comfortable discussing financial difficulties with AI than with people close to them. Speed and lack of judgment are the main draws, with over 60% citing quick answers and non-judgmental advice as key factors.
However, AI is not yet the most trusted source—only 22% of millennials and 16% of Gen Z rank it as their top resource. Traditional financial sources still lead. But the fact that younger clients may pre-process financial stress through AI before seeing an advisor suggests that initial meetings might now serve as second opinions rather than first contacts. This aligns with broader trends in AI adoption among younger investors.
Separately, a PayPal-commissioned survey by Morning Consult of 2,005 U.S. adults (September 2–4, 2026) found that 58% of Americans feel more financial concern heading into the holidays, yet 64% still plan to spend the same or more than last year. To manage, 36% plan to set and stick to a budget, 32% will compare prices, and 31% will wait for sales. Over half plan to start shopping before Thanksgiving, with 40% starting by end of October.
Buy Now, Pay Later (BNPL) is gaining traction: 55% of consumers have used or considered it, and three-quarters of that group plan to use it for holiday purchases. Flexibility and budget control were each cited by 59% as benefits. However, 42% said they'd be more likely to make a purchase if BNPL were available—a potential risk for clients already carrying credit card debt. Advisors should discuss how BNPL fits into broader debt repayment plans, especially given that 38% of millennials and 27% of Gen Z with unsecured debt owe $7,500 or more.
These surveys underscore that younger clients are financially stressed, guarded about money, and increasingly reliant on technology. Yet they remain willing to spend, albeit more deliberately. For advisors, the data points to an opportunity: offering structured debt management conversations alongside traditional planning could resonate. The preference for AI often reflects a gap in accessible, judgment-free professional advice, not a rejection of human expertise. As hybrid digital advice platforms emerge, advisors who blend technology with personal guidance may be best positioned to serve this generation.
