Gen Zers Are More Optimistic Than Millennials About Debt

Members of Generation Z appear more optimistic about the prospects of one day being debt-free than their millennial counterparts, an exclusive Newsweek poll has shown.

The findings come as part of a survey, conducted by Talker Research from January 15 to January 20, in which 1,000 employed U.S. adults were quizzed on the topic of debt and savings.

As part of the poll, respondents were asked: "To the best of your knowledge, will you ever be debt-free in your lifetime?"

The responses highlighted a notable contrast, with 81 percent of Gen Z respondents born from 1997 to 2006 responding "yes," while 66 percent of millennials (ages 29-43) felt the same.

Gen Z appeared far and away the most positive-minded in responding to this question. By comparison, 55 percent of Generation X respondents (ages 44-60), 62 percent of baby boomers (ages 61-79) and just 33 percent of the Silent Generation (80-plus) believed they would be debt-free within their respective lifetimes.

Said Israilov, certified financial planner and wealth manager at Israilov Financial, felt the pessimistic outlook among millennial respondents was because millennials "have longer and more complex experience navigating life challenges."

"The realities of managing financial obstacles for many Millennials were shaped during the post-2008 Great Recession," he told Newsweek. "Many older Millennials graduated from college with sizable student loans, dismal job prospects, and challenging economic realities. Perhaps these life experiences have made Millennials more bearish about their future economic outlook."

Israilov also suggested millennials are more likely to carry mortgage debt. "Many of them are tied to their houses due to the low interest rates they secured when they first bought," he said.

"Due to this, they might feel hesitant to sell and move because of the attractive rate they locked in. Over the past five years, 30-year mortgage rates went up from 2.5-3.0 percent in 2020 to 6.5-7.00 percent in 2025."

On the flip side, Joe Camberato, CEO of leading lending marketplace NationalBusinessCapital.com, and an expert on personal finance, believes there are more opportunities for Gen Zers to earn their way out of debt.

"There are way more ways to make money today than there were when Millennials were coming up. Side gigs, freelancing, remote work - Gen Z has more opportunities to earn extra income on top of their day job, and they know it," Camberato told Newsweek. "If you want to make more, the work is out there."

He also believes Gen Zers have a fundamentally different approach to managing their money. "They're staying home longer, which cuts down on rent and other major expenses. That gives them more breathing room to save, invest, and pay off debt faster," he said. "They're thinking long-term in ways that Millennials didn't always have the chance to."

This random double-opt-in survey of 1,000 general population Americans was commissioned by Newsweek from January 15 to January 20. It was conducted by market research company Talker Research, whose team members belong to the Market Research Society (MRS) and European Society for Opinion and Marketing Research (ESOMAR).