Forget Avocado Toast: Gen Z Is Taking on a New Kind of Debt—and It Could Lock Them Out of Homeownership

It starts innocently enough… You put the concert tickets on your credit card, your friend books the Airbnb, and someone else covers dinner. Everyone promises to settle up later. Except “later” turns into next payday. Then next month. Before long, not only are you floating your friends, you’re carrying debt for them.New Zelle research calls this informal financial burden “shadow debt,” and it appears to be hitting Gen Z particularly hard. Nearly half of Gen Z respondents said they’ve gone into debt to cover group expenses, while 76% of those who fronted money said they weren’t fully repaid.Those lingering balances can do more than just erode friendships. They can also quietly weaken the same numbers mortgage lenders use to decide whether you’re ready to buy a home.Gen Z’s newest debt problem isn’t just student loansIt’s no secret that group experiences (and hanging out with friends in general) are getting expensive. According to Zelle, 37% of Gen Z respondents spent at least $2,501 per person on major trips and events. That’s the highest share of any generation.And repayment is not always quick. Among Gen Z borrowers, 18% said paying someone back can take up to a month, 10% said two...