The Global Debt Crisis Is Crushing Young People

Across the world, young people are being pushed into debt traps they never created. Between 2022 and 2023, Gen Z saw their average debt rise by more than 15%, while Millennials faced an 8% increase.?

The story isn’t unique to the United States. From Europe to Asia, Africa to South America, younger generations are fighting the same battles: stagnant wages, skyrocketing housing costs, unaffordable education, and a global economy that no longer works for them.

Debt is no longer an American problem. It’s a global crisis that threatens the future of billions.

Do you feel like you’ve inherited a broken system? You’re right. And it’s time we talk about it.

Debt Is a Global Epidemic

Young people everywhere are struggling financially.

In the United Kingdom, household debt has reached historic highs, with 18-24 year olds seeing a surge in credit card debt and personal loans.

In Japan, the population is shrinking while the cost of living grows, leaving young workers burdened by stagnating wages and declining job opportunities.

In Australia, housing prices have risen over 400% since the 1990s, far outpacing wage growth. A down payment is almost impossible without years of savings.

In India, education costs are climbing rapidly, leaving families and young professionals reliant on loans they may never repay.

Even in countries where student debt isn’t a major issue, such as parts of Europe, rising energy prices, inflation, and housing shortages pull young people deeper into financial despair.

Are you seeing the pattern? The system isn’t just broken in one country. It’s broken everywhere.

You Work More, Earn Less

While older generations thrived during decades of post-war growth, young people today are inheriting economic instability. Wages have stagnated in nearly every part of the world while costs continue to soar.

In Germany, the purchasing power of young workers has declined over the last two decades. In South Africa, youth unemployment hovers around 60%, leaving a whole generation locked out of economic participation.

Even in developing nations, where wages might seem higher on paper, inflation and inequality erase any progress. Cities like Mumbai, Jakarta, and S?o Paulo offer young professionals little chance to buy homes or save for the future.

So here’s the question: if the global economy keeps shrinking opportunities for young people, what kind of future are we building?

Housing: A Home or a Fantasy?

Owning a home is a universal dream. For most young people today, it’s out of reach. In Canada, average home prices have nearly tripled in the past two decades, while wages barely moved.

In New Zealand, the government labelled its housing crisis a national emergency because costs had soared so much that homeownership was no longer realistic for young workers.

Meanwhile, cities like Hong Kong and London have seen home prices reach unimaginable levels, forcing many to rent indefinitely or live with family well into their 30s.

What’s worse? The rental market is no safer. In Africa, rent in cities like Lagos and Nairobi consumes up to 60% of an average salary. In South Korea, “jeonse” rental systems demand massive upfront deposits, locking many into debt for a place to live.

Young people are increasingly nomadic, sharing housing or delaying family life because they can’t afford stability. How did we reach a point where basic shelter—a human right—has become a luxury?

Education: A Global Debt Sentence

Education was supposed to be the path to a better life. Today, it’s often the opposite. In the United States, student loan debt has passed $1.7 trillion. But this isn’t just an American problem.

In China, families spend their life savings on education, driven by fierce competition and societal pressure. In Nigeria, high tuition fees and poor access to loans leave many without an education or drowning in informal debts.

Even in Scandinavian countries, where education is publicly funded, living expenses during university life still put pressure on young people, forcing them to take out loans for survival.

Globally, a degree no longer guarantees financial stability. Many graduates face unemployment or underemployment, often earning far less than expected while carrying the weight of education loans.

What needs to change if the very systems built to help us succeed are now the reason we’re struggling?

The Psychological Cost of Financial Stress

Debt is changing what it means to be young. Across countries, research shows that Gen Z and Millennials face higher rates of anxiety and depression tied to financial stress.

In Japan, the phenomenon of “hikikomori” youth withdrawal from society is rising as young people feel overwhelmed by debt and social pressures.

In Europe, surveys show that more than 50% of Millennials and Gen Z are delaying major life decisions—like marriage, children, or starting a business—because of debt and economic uncertainty.

Over 40% of young people in the United States feel “financially broken.”

The weight of debt isn’t just holding young people back economically; it’s suffocating their ability to dream, innovate, and thrive.

Do you feel hopeful about your future? Or does the survival pressure keep you from imagining what life could be like?

The Global Consumption Trap

Social media fuels an illusion of wealth. Platforms like TikTok and Instagram expose young people worldwide to luxury lifestyles—ones they’re encouraged to chase, even if they can’t afford them.

“Buy now, pay later” services like Afterpay, Klarna, and credit apps push young people further into consumption debt. In the UK, over 40% of young shoppers have used these services, and many struggle to repay.

The pressure to consume is global and relentless. Young people spend not because they’re irresponsible but because, in many cases, small comforts are the only escape from a harsh financial reality.

If consumption is the only thing holding the economy together, what happens when young people can no longer spend?

What Needs to Happen?

Young people are not the problem. They are the consequence of an unsustainable economic system. If the world doesn’t change, we risk creating generations who will be poorer, sicker, and less secure than before.

We need to:

• Stop treating homeownership as an investment first and shelter second. Governments should tax empty properties, discourage speculation, and build affordable housing—not just for profit, but for people.
• Rethink education funding. If education creates opportunity, why does it start with debt? Governments and businesses should expand apprenticeship models, employer-funded education, and debt-free learning paths.
• End the consumption trap. Social media drives spending, and banks and apps make debt easy. Schools need to teach financial survival, not just math.
• Demand wages that grow with costs. Corporations report record profits while wages stagnate. Laws must ensure fair pay keeps up with inflation.

What happens if we do nothing? Can we afford to let generations live without hope, locked in cycles of debt?

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