Americans Use 8.2% of Personal Loans for Bills as Gen Z Leads at 10.5%
Updated
Updated · Newsweek · May 14
Americans Use 8.2% of Personal Loans for Bills as Gen Z Leads at 10.5%
5 articles · Updated · Newsweek · May 14
8.2% of personal-loan requests on LendingTree from April 2025 to March 2026 were for everyday bills, more than double 2023's 3.4% and now the fourth most common borrowing reason.
3.8% inflation in April, high housing costs and debt burdens are squeezing budgets while wages rose 3.6% over the past year, leaving many households borrowing for groceries, utilities and rent.
Gen Z borrowers ages 18 to 29 showed the highest share of requests for routine expenses at 10.5%, ahead of millennials at 9.3%, as younger adults face steep housing and student-loan pressures.
$4,317 was the average loan sought for everyday bills, and those borrowers had an average credit score of 574; 57.5% of such requests came from people below 580, pointing to higher repayment risk.
December's share climbed to 9.4% before easing, and Louisiana led states at 10%, underscoring how seasonal spending and local cost pressures are deepening reliance on small emergency borrowing.
As Americans increasingly borrow for groceries, is this a sign of a broken economy or smarter financial management?
With household debt at a historic high, can new government affordability policies reverse the tide for struggling families?
42% of Americans Now Rely on Personal Loans for Basic Bills: Causes, Risks, and Solutions (2024–2026)
Overview
Americans are increasingly relying on personal loans to cover essential living expenses, with total outstanding personal loan debt surpassing $250 billion by early 2026. This marks a sharp rise from $240 billion in Q1 2024, reflecting a 20% year-over-year increase. The percentage of Americans using personal loans for daily expenses jumped from 30% to 42% in just two years, showing how more households are turning to these loans to manage everyday bills. This trend highlights growing financial pressure and signals a shift in how many people are coping with rising costs and stagnant wages.