Gen Z's Shadow Debt Poses Threat to Homeownership Prospects
A new report highlights a growing financial challenge for Gen Z, termed 'shadow debt,' which could hinder their ability to achieve homeownership. This informal debt arises when individuals cover group expenses, such as concert tickets or Airbnb bookings, with the expectation of being repaid later. However, delayed repayments can lead to increased credit card balances and interest charges. According to Zelle, nearly half of Gen Z respondents have incurred debt to cover group expenses, with many not fully repaid. This financial burden can negatively impact credit scores and debt-to-income ratios, crucial factors in mortgage approval processes. 
