Debt has become a defining financial challenge for many younger adults. A survey conducted by National Debt Relief found that a large majority of millennials and Gen Z adults currently carry some form of it.
The findings point to a generation facing persistent pressure from high living costs, unexpected expenses, credit card balances, and everyday spending that can become difficult to manage over time.
On top of that, many reported using artificial intelligence for financial guidance, while others said they participate in gambling, sports betting, day trading, prediction markets, or similar speculative activities in an effort to pay off debt. In fact, a separate survey discovered many people plan to try trading event contracts on a prediction market platform during the NFL season.
The trend reflects real pressure from rising living costs, unexpected bills, and everyday spending habits that can quietly add up. It's also a call for more responsible gambling measures on every level. The NFL is already trying to do its part.
Debt Is Common for Millennials and Gen Z
Unfortunately, debt has become a normal part of adult life for many younger Americans. The survey, conducted with Wakefield Research, found that 87% of millennials and 77% of Gen Z adults currently carry some type of debt.
Unsecured debt is especially common. This category includes debt that is not backed by collateral, such as credit card balances, medical bills, and personal loans. The survey found that:
- 73% of millennials have unsecured debt.
- 60% of Gen Z adults have unsecured debt.
- 56% of millennials carry credit card balances from month to month, compared with 37% of Gen Z.
- 38% of millennials with unsecured debt owe at least $7,500.
- 27% of Gen Z respondents with unsecured debt owe $7,500 or more.
For many people, the issue is not one major purchase. Instead, debt can grow through a series of smaller expenses, including subscriptions, food delivery, online shopping, and convenience spending.
Among younger adults with debt, 71% of millennials and 69% of Gen Z respondents said spending on subscriptions, delivery services, and social-media-driven shopping contributed to their financial strain. “Treat yourself” purchases also played a role: 72% of millennials and 64% of Gen Z said they had made purchases they could not really afford.
Why Younger Adults Feel Stuck in Debt
The cost of living has increased pressure on household budgets. Rent, groceries, transportation, insurance, health care, and other essentials can leave little room for savings or emergency expenses.
When an unexpected bill appears—such as a car repair, medical expense, reduced work hours, or job loss—many people rely on credit cards or loans to close the gap. That can create a difficult cycle:
- A person uses credit to cover an urgent expense.
- Interest and fees increase the balance over time.
- Monthly payments take up more of the budget.
- The person has less cash available for future emergencies.
- New expenses may lead to even more borrowing.
The emotional effect can be serious. Nearly half of millennials surveyed, 46%, said a debt-free life does not feel realistic for them. That outlook may help explain why some people seek fast solutions rather than slow, long-term financial planning.
AI Financial Advice Is Becoming More Popular
Artificial intelligence is increasingly part of how younger adults look for financial help. The survey found that 69% of millennials and 64% of Gen Z adults have used AI for guidance about financial challenges or money struggles.
People may turn to AI because it feels fast, private, and less intimidating than talking to another person. More than 60% of AI users in these younger groups said quick answers were a major advantage. Many respondents also viewed AI as a judgment-free source of support.
The comfort level is notable:
- 65% of millennials said they would feel more comfortable discussing financial struggles with AI than with family or friends.
- 53% of Gen Z respondents said the same.
- 46% of millennials said AI had influenced a major purchase decision.
- 35% of Gen Z said AI had influenced a major purchase decision.
AI can be useful for basic tasks, such as building a budget, explaining financial terms, organizing a debt payoff plan, or preparing questions for a financial professional. However, it should not replace careful review of a person’s full financial situation.
Financial decisions can involve interest rates, tax consequences, consumer protections, credit scores, repayment terms, and legal obligations. AI tools may not have complete or current information, and their suggestions may not fit a user’s income, debt type, or personal goals.
A smart approach is to use AI as a starting point—not as the final decision-maker.
Gambling and Speculation Are Not Reliable Debt Solutions
Some younger adults are also using gambling or speculative activities in an attempt to escape debt. The survey grouped together sports betting, traditional and online casino gambling, fantasy sports, prediction markets, day trading, and lottery participation.
Overall, 62% of millennials and 45% of Gen Z respondents said they regularly take part in at least one of these activities.
Among people who participate regularly, many said they had done so to try to pay off debt:
- 65% of Gen Z regular participants said they had used gambling or speculative activities in an effort to eliminate debt.
- 49% of millennial regular participants said the same.
- By comparison, 39% of Gen X and 19% of baby boomers reported doing this.
This is a risky strategy. Gambling and speculative trading may offer the possibility of a quick gain, but they also create a real chance of losing money that is needed for rent, food, minimum debt payments, or emergency savings.
Trying to win back losses can make the problem worse. Someone may borrow money, use a credit card, or skip other bills to keep gambling or trading. That can turn financial stress into a deeper debt cycle.
Debt Can Affect Relationships and Life Plans
Money concerns do not stay on a spreadsheet. Debt can influence relationships, dating, family decisions, and mental well-being.
The survey found that many younger adults would rather share their weight than reveal the total amount of debt they carry. That points to the shame and stress that can surround financial struggles.
Debt also affects how people think about relationships. For millennials, a potential partner’s debt ranked high among dating considerations. Gen Z respondents also considered partner debt important, although to a lesser degree.
Financial security may shape broader life plans as well. A majority of Gen Z respondents said financial security was more important to them than having children. This does not mean younger adults have abandoned personal goals. It may mean they believe stable finances must come first.
Practical Ways to Start Managing Debt
People facing debt do not need a perfect plan to begin making progress. Small, clear steps can help create a more realistic path forward, including:
- List every debt, including the balance, interest rate, minimum payment, and due date.
- Build a monthly spending plan that covers essentials before nonessential purchases.
- Review recurring charges, subscriptions, delivery spending, and impulse purchases.
- Avoid treating gambling, day trading, or prediction markets as debt repayment plans.
- Contact lenders or card issuers to ask about hardship programs, payment plans, or lower-rate options.
- Consider speaking with a nonprofit credit counselor, qualified financial professional, or reputable debt-relief provider.
- Use AI tools to organize questions or compare budgeting options, but verify important information before acting.
- Seek support from a trusted person if money stress is affecting sleep, relationships, work, or mental health.
The most effective debt strategy is usually not a dramatic financial win. It is a steady plan that lowers expenses where possible, prevents new high-interest borrowing, and creates a structured way to repay or resolve existing balances.
Action Network Responsible Gambling Resources
The Action Network also has a host of responsible gambling resources people can use. We've compiled some content we've done in the past about how to limit yourself, educate yourself, manage your bankroll, and more.
They include:
- How to Set Limits on Your Sportsbook Accounts
- What is Problem Gambling and What Can You do to Avoid it?
- The Importance of Odds Shopping and Ignoring Sportsbook Loyalty
- Responsible Gaming Tips
- What is House Edge and RTP?
- How to Ban Yourself Through Self-Exclusion
- How to Not Bet Every Longshot You See on Twitter
- Mistakes Sports Bettors Should Avoid
- How to Manage Your Sports Betting Bankroll
- Casino Cognitive Biases
- What is a Bonus Bet? And What Are The variations behind it?
- What is a Rollover Requirement?
- Tips For Dealing With Tilt
You can also contact the the National Problem Gambling Helpline Network for help.
The Bottom Line
Younger adults are finding new ways to cope with financial pressure. AI can make financial guidance feel more private and accessible, while gambling and speculative activities may seem like a shortcut to relief. But high-risk bets rarely offer a dependable solution to debt.
For millennials and Gen Z, the larger story is not simply about poor spending choices. It is about the collision of high living costs, unexpected expenses, easy credit, digital spending habits, and anxiety about the future. Sustainable progress usually comes from accurate information, realistic budgeting, and personalized support—not from hoping for one big win.
