(BPT) - New research reveals how AI, gambling and money shame are shaping younger Americans' financial lives.

Millennials and Gen Z are facing significant financial pressure, with many seeing their debt grow every day from increased living costs, lingering expenses and unexpected life events. For some, that pressure is shaping not only how they manage their money, but also where they turn for financial guidance and how they think about relationships, family and their futures.

A new study by National Debt Relief in partnership with Wakefield Research* shows how deeply younger Americans are challenged by debt and the stigma around it, trusting AI over loved ones, taking financial risks to pay off debt and rethinking major life decisions.

How widespread is debt for Gen Z and millennials?

Debt is widespread among younger Americans, with nearly 9 in 10 millennials (87%) and almost 8 in 10 Gen Z (77%) currently carrying debt. When looking at unsecured debt, such as credit cards, medical bills, personal loans and Buy Now, Pay Later (BNPL), more than 7 in 10 millennials (73%) and 6 in 10 Gen Zers (60%) carry unsecured debt. Credit card debt was cited as the most common.

Rising costs and unexpected expenses are the greatest contributors to that debt. Millennials cite economic factors (49%) and unexpected expenses (49%) as the most common causes of their debt in the last year, while Gen Z cites unexpected expenses (40%) as the leading driver of their debt.

Why younger Americans turn to AI for advice

Unfortunately, debt carries a stigma and feelings of shame for many younger generations that can make it uncomfortable for them to talk about. In fact, 6 in 10 millennials (60%) and a similar share of Gen Z (59%) say they'd rather publicly display their weight than their total debt. That discomfort may be one reason younger Americans are increasingly turning to artificial intelligence for financial guidance.

Nearly 7 in 10 millennials (69%) and 64% of Gen Z have used AI for advice about a financial challenge or struggle, compared with 45% of Gen X and just 23% of boomers. And 65% of millennials and 53% of Gen Z say they would feel more comfortable discussing financial struggles with AI than with the people closest to them.

This turn to AI is also influencing the financial decisions of many younger Americans. Forty-six percent of millennials and 35% of Gen Z say AI has encouraged them to make a major purchase they were uncertain about. However, traditional financial resources still rank as the most trusted source of financial guidance among both generations.

"Financial struggles can be incredibly personal, and younger adults may be looking for places where they can ask questions without feeling judged," said Timi Joy Jorgensen, Ph.D., "The Joyful Money Doctor" and personal finance expert with National Debt Relief. "AI can be a useful starting point but shouldn't replace trusted guidance that takes a person's full financial situation into account."

How younger Americans are responding to financial pressure

While some younger Americans are turning to AI for financial guidance to avoid feeling judged, the pressure they face can also lead to riskier approaches to addressing debt. Among those who regularly participate in gambling, trading and similar activities, 65% of Gen Z and 49% of millennials say they have done so in an attempt to pay off debt.

"Borrowing money to gamble in hopes of paying off debt can create a cycle that leaves people in an even more difficult financial position," said Cathleen Bell, vice president of Customer Research & Insights, National Debt Relief. "When debt feels overwhelming, understanding your options and crafting a safer plan with an expert can offer a more sustainable path forward."

Financial pressure is affecting major life decisions for younger Americans

Financial pressure is also shaping how younger Americans think about their futures and relationships. Nearly three-fourths of Gen Z (72%) say people should prioritize financial security even if it means not having children. Debt can also affect how younger generations evaluate potential romantic partners, with about half of millennials (49%) ranking debt among the top three things they want to know about a potential partner, more than arrest history, religious beliefs and political views.

Social payment apps can affect how younger generations perceive each other as well. One-quarter of millennials (25%) say they've formed an opinion about someone's financial habits based on their Venmo transactions, compared with 17% of Gen Z and 15% of Americans overall.

These pressures are also shaping younger Americans' expectations for their own financial futures. Nearly half of millennials (46%) and one-third of Gen Z (33%) say a debt-free life is not a reality for them.

"Financial stress can make long-term goals feel further out of reach," said Bell. "Having a clearer picture of your finances can help you make decisions with greater confidence."

Everyday spending can contribute to debt

Everyday purchases can also make existing financial pressures harder to manage. About 7 in 10 millennials and Gen Z with debt (71% and 69%, respectively) say convenience purchases like subscriptions, food delivery and social media shopping have contributed to what they owe, compared with 51% of Gen X and 33% of boomers.

For younger generations, the urge to "treat yourself" can outweigh financial constraints as well. Seventy-two percent of millennials and 64% of Gen Z say they've bought something they felt they deserved even when they couldn't afford it at the time, compared with 36% of boomers.

Tips for handling debt

Understanding how much you owe and what is contributing to debt can help determine what steps to take. Strategies to manage debt include:

• Take an honest look at your finances. Total your debt, income and monthly expenses so you know exactly what you owe and what you can realistically afford to pay down.
• Build a realistic budget. Review essential and recurring expenses, including subscriptions, streaming services and food delivery, to understand your total monthly costs and identify nonessential spending that can be reduced.
• Pay in full when possible. Whenever possible, pay your full statement balance rather than the minimum due. Paying only the minimum can mean continuing to accrue interest on the remaining balance.
• Choose a repayment strategy. Focus on your highest interest rate debt first to save money over time or pay off the smallest balances first for quick wins that build momentum.
• Know when to seek expert guidance. If debt feels unmanageable on your own, learning about the debt relief options available and speaking with a professional can help you determine what approach may fit your financial situation and budget.

Finding the right debt relief solution

The strategies above can help make debt more manageable, but significant debt can sometimes be difficult to address alone. In those situations, expert guidance can help consumers understand the options available and determine a path forward.

If you're struggling with $7,500 or more in unsecured debt, National Debt Relief offers a personalized approach to resolving debt and working toward greater financial stability. The company creates a customized debt relief plan based on a client's individual financial situation. Clients make deposits into a dedicated savings account they own and control, building funds that can be used toward negotiated settlements.

National Debt Relief works with creditors to negotiate eligible debts for less than the full amount owed. Clients do not pay a settlement fee until a debt has been successfully negotiated, the client approves the debt relief settlement, and at least one payment has been made toward it. Clients also receive access to financial education and resources to build healthier financial habits.

"Asking for help shouldn't be a last resort," added Bell. "For people carrying significant unsecured debt, it's crucial to know there are solutions to help them get back on track."

Learn more at NationalDebtRelief.com.

*Survey Methodology: The National Debt Relief survey was conducted by Wakefield Research through a custom online survey of 2,000 nationally representative U.S. adults ages 18 and older. The survey included twenty (20) content questions, along with custom screeners and demographic questions. It included responses from 550 millennial adults with oversample interviews conducted to increase the total number of Gen Z respondents to 500.