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Gen Z, millennials using personal loans for everyday bills: Report

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by Tatiana Carter - 05/13/26 12:02 PM ET

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by Tatiana Carter - 05/13/26 12:02 PM ET

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(NewsNation) — Young borrowers are increasingly turning to personal loans to cover everyday expenses, according to a new study.

Personal loans, which are often used to finance large purchases, are now being used by younger consumers to make ends meet.

A report from LendingTree found that at least 10.5 percent of personal loan borrowers are members of Gen Z.

Major spending periods, including the winter holidays and back-to-school season, often place additional strain on household budgets, increasing the likelihood that borrowers will rely on loans to keep up with routine bills.

States with the highest rates of personal loan borrowers

Consumers in several states are relying heavily on personal loans to pay for essential expenses, underscoring uneven financial pressures across the country.

Louisiana led the nation, with 10 percent of personal loan requests tied to everyday bills. It was followed by New Hampshire, Pennsylvania, Arkansas, Indiana and Kentucky.

Image via LendingTree

Alabama, Mississippi and West Virginia tied for seventh place, while North Carolina and Virginia tied for 10th.

US records largest inflation jump in years

The Labor Department reported Tuesday that the consumer price index rose 3.8 percent in April from a year earlier.

On a monthly basis, prices increased 0.6 percent from March, driven in part by a 5.4 percent jump in gasoline prices.

Excluding food and energy categories, so-called core consumer prices rose 0.4% in April from the previous month and 2.8 percent from April 2025.

The relatively modest increases suggest that rising energy costs have not yet significantly spread to other sectors of the economy.

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