Gen Z borrowers are carrying more credit

card debt than millennials did at the

same age despite growing up with more

financial information than any

generation before them.

>> Yeah.

>> 98% of Gen Z say credit is important.

But only 53% believe they have adequate

access to it. And more than half of

Americans have used buy now pay later

services. 59% of those users were Gen Z.

>> Oh yeah, that makes sense. Paying for

CLA everything. It's a very Gen Z thing.

Tap to pay. super easy to use those.

They're at every checkout for any

concert you go to, pretty much anything

you want to do. Um, so that's not

surprising. There is, um, I'm not I'm

forgetting the term off the top of my

head, but it's something like Doom Loop

or something that a lot of Gen Z is kind

of getting into where

>> mostly because of the information out

there and the algorithms they find

themselves in, they think everything's

going to be so bad forever. Why not just

spend the money? Why not just put it on

a credit card? So, it makes sense. It

seems to me like uh a big part of it is

people being so unsure about the future

and feeling like things are not going to

get better that well [ __ ] it. It's

almost like the end of days. You know,

there's this interesting story about

during the Blitz in World War II in

London, uh the amount of casual sex that

people were having went through the

roof, but lingerie sales stayed the

same. And it was just people thought,

look,

>> I might die tomorrow. It doesn't really

matter about how sexy I look at in bed.

Let's just get down to it. And it's kind

of the financial equivalent of that. I'm

just going to dump it all. Which is this

weird sort of uh recursive system. It's

this self-reinforcing mechanism that if

you have

>> negative information about the economy

and about the quality of life for young

people and about how hard you've got it

and the fact that it's never going to

get better, that encourages people to

behave in a way that makes the thing

true.

>> Yeah. Absolutely.

>> Kind of wild.

self it's a a self-fulfilling prophecy

that kind of gets

>> not made out of nowhere. There are real

material changes, but it's certainly

worsened

>> and it's tracked. The University of

Michigan does consumer sentiment survey

uh and that I think they've done it

since the 1980s and right now is one of

the three lowest we've ever had. I think

it was right when COVID kicked off, the

great recession and now. But now is not

even near great recession in any other

indicator anywhere. It's not right when

COVID kicked off when everything shut

down and no one know what was knew what

was going to happen, but consumer

sentiment is basically at an all-time

low.

>> What do you think's going on?

>> Well, we are stuck in those algorithms.

You make money on negativity. Like even

I have a documentary channel, more of a

passion project, not much of a money

maker called.

>> It's cool. I like it.

>> Oh, thanks. Called Front Page. Still

getting the feel of it. But either way,

I mean, the reality is the the topics

that are interesting to talk about are

the more negative ones. Super positive

content isn't as interesting to talk

about. For whatever reason, I'm not

interested in learning about super

positive, not interested in talking

about super positive. So,

>> does it feel urgent?

>> No, exactly. So, that's the information

that's getting out there. That's the

information that catches people's

attention, keeps them in the algorithm.

So, I'm not surprised at all. I mean,

nightly news other than one fluff piece

is usually just negative, negative,

negative. Even about the heat outside,

it's like the apocalypse. Uh, it's it's

always just negative. So, it's not

surprising. That's what drives our

attention. It's what drives the

algorithm. So, consumer sentiment will

of course be lower,

>> right? And that is impacting people's

behavior, which actually brings that

reality, brings that imagination into

reality or brings the news feed into

your finances.

>> Pretty interesting.

>> Yeah. Even though consumer spending is

actually relatively healthy overall,

like this isn't the best year in our

economy, but it's also not even close to

the worst year. Things are relatively

healthy. There's some bad things like a

called out. There's the new graduates,

bad job market for new graduates. And

there's a lot of things at play there.

There are a lot of things that play

there. There's the nervousness of AI.

There was the overhiring during the tech

boom during COVID. They've cut back

there. And if there's if there's no

people leaving their jobs voluntarily,

there's no jobs opening. And the people

that are leaving their jobs in Texas are

the one getting laid off and they're not

rehiring someone who's getting laid off.

So those job openings that were there

during the pandemic aren't there. So

there's actual negative things happening

right now, but it's not the overall

economic situation. We're still having

okay GDP growth

>> postinflation. Um the war Iran done

allegedly. We'll see.

>> Is it? He signed the uh idea of peace or

something yesterday and so did Iran, the

leader of

>> me. That's like a guy with erectile

dysfunction saying, "I've signed the

idea of erection today." Yeah.

>> Sign the idea of a of a penis. Uh I want

to get you to react to a financial case

here. Can we pull up that Tik Tok,

Jared?

>> I've had such a bad financial burden the

last couple years. So, after meeting

with attorney and doing lots of

research, I realized that filing

bankruptcy really isn't as bad as it's

made out to be, and it was truly going

to be my best bet. Decided to file

Chapter 7. And you know, truthfully, my

consumer debt really is not that bad. A

lot of people have it a lot worse

financially. But for me, $91,000 was

just too much. It was uncomfortable and

I just wanted to get a fresh start. I

moved to Texas directly after high

school and I made a lot of very

irresponsible decisions financially and

really dug myself into a big hole of

debt. I decided, let's go ahead and file

bankruptcy. Let's get myself a clean

slate. That way, I can stop stressing

and I can actually do better. Okay, just

to give you a little breakdown of the

debt that I do have that totals up to

$91,300.

I owe about $51,000 on the vehicle that

I have. We did try selling that, trading

it in, all that good stuff, but have way

too much negative equity to come out on

top. I bought a motorcycle back in 2022.

Thought that was a great idea. Um I have

still on that same thing. Tried selling

it, not able to get what we owe out of

it. Um I do own a camper and I owe about

$13,400 on that. to live out of that

camper because I can't afford a house.

Um, so I am keeping that since I do live

in it. I have $2,200 worth of medical

bills that I had no idea were in

collections. And then I have $12,000

worth of student loans. However, those

do not get forgiven with bankruptcy. So,

I will still continue that payment. And

then I have about $7,700 worth of credit

card debt. All coming into a grand total

of $91,300.

>> First of all, okay, yes, it is harder to

get into a home. Now, yes, a large down

payment is difficult to get to. Uh,

interest is not great on a house. How in

the world does she think she's possibly

possibly going to Sorry, I don't mean to

scream. You're not a guest on my show.

Why does she think in in what world does

she think she is ever going to get to

home ownership if she's getting camper,

motorcycle, and a $50,000 car? $50,000

car when she's moving to a brand new

state. This is This is so American. We

are so debt brainbroken. And she's

actually right. I mean, bankruptcy is

actually not that hard, not that brutal,

a little expensive, but it's really not

the worst. It [ __ ] your credit for a

bit, and it's not a good learning

lesson. People usually end up in the

same situation they are without changing

their behavior before going through

bankruptcy. So, but she is right on

that. But how did she ever expect? She

can't get sympathy of not buying a house

if she's getting a camper, motorcycle,

and car, of which minimum payments on

the camper uh on the motorcycle and car

are likely over $1,000 together. like

$1,000 going against anyone's income

unless you're like in the top 1% is

going to aggressively prevent you from

saving anything. Remember, she can get

an FHA loan on her first house. She can

get what is that as low as 1.5%

something like that down on your first

house. Um, how how would she how was she

surprised? You can't get anywhere. And

that also is really stupid getting a

trailer instead of renting an apartment

cuz she's she's getting debt on a

depreciating asset.

It's almost even worse cuz an expense

could pop up. Have to get new tires. She

has to pay rent anyway, likely to park

somewhere and get the utilities plugged

in.

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