When you think of personal loans, you might picture a Gen Z college grad trying to cover rent or fund a dream side hustle. But long before Buy Now, Pay Later and TikTok money advice, Boomers were taking out loans to cover everything from home repairs and medical bills to that once-in-a-lifetime cruise.
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Now, with decades of borrowing under their belt, their experiences offer a crystal ball of sorts–one that Gen Z might want to peek into. According to an Experian study, Boomers owed $4.5 trillion in debt in 2024.
Here’s how personal loans shaped the financial lives of Boomers — and what that could mean for the Gen Z borrowers.
Boomers Used Loans To Chase Stability
“Boomers like me grew up with a different idea of debt,” said Angelo Crocco, certified public accountant (CPA), CGMA and owner of AC Accounting. “Personal loans were tools and not threats.”
He explained that fixed interest rates and clear payment timelines meant predictable control. But he said they also borrowed in times when wages rose with inflation and retirement benefits became better.
“So when this model failed, many ended up with personal debt higher than their paychecks, especially as medical and housing costs increased,” Crocco added.
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Gen Z Needs to Approach Credit Differently
According to Crocco, Gen Z is living through a financial system that’s tighter, faster and less forgiving. That means high-interest loans, gig economy pay and fluctuating rents make it harder to forecast even the next six months.
“I would say the lesson here isn’t ‘never borrow’, but instead it’s ‘never borrow blindly.’ Every dollar borrowed must have a plan to repay that fits your income today, not in the future,” Crocco cautioned.
Small Daily Choices Beat Big Rescue Plans
Crocco recommended skipping impossible budgeting goals. Instead, focus on one swap a day. Cook instead of DoorDash, cancel a dormant subscription or transfer $20 every Friday to a high-yield savings account.
“Build on that discipline until it replaces the emotional urge to borrow,” Crocco urged. “I repeat this too many times, Gen Z doesn’t need more apps, it needs fewer impulsive debts. The less you owe, the more freedom you keep.”
It’s not about being perfect–it’s about being consistent. Those tiny decisions stack up, often more powerfully than one dramatic financial overhaul.
Remember: Small, repeatable actions build real financial resilience.
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This article originally appeared on GOBankingRates.com: How Personal Loans Have Impacted Boomers — And What It Means For Gen Z
