right here. You can listen to an audio version of the newsletter by clicking the same link. New York CNN  —  Gen Z is in the financial trenches. A new study from credit reporting agency TransUnion found those in their early 20s are earning less, have more debt and see higher delinquency rates than Millennials did at their age. The findings outline the credit usage of 22 to 24 year old Gen Zers. Millennials who fell in that age range in 2013 were asked about their credit usage during that period. Gen Zers are defined as those born between 1995 and 2012, and Millennials as those born between 1980 and 1994. Gen Zers, like Millennials, have had to deal with economic calamities early in their careers. For Gen Z, it was the Covid-19 pandemic. For Millennials, it was the global financial crisis. But the current generation of early 20-somethings have another challenge: sticky inflation that’s driven up prices of everything from gas at the pump to food at the grocery store. Interest rates perched at a 23-year high have also hiked borrowing rates for auto loans, student loans and mortgages. This isn’t a problem completely unique to early-career consumers. The entire US credit economy has seen higher debt levels and delinquencies across most credit products. A separate TransUnion report found that Americans’ total credit card balance topped $1 trillion for the first time in 2023. But because Gen Zers are early in their credit journeys, it is important for them to establish healthy habits now that will help them down the road, experts say. Before the Bell spoke with Charlie Wise, head of global research and consulting at TransUnion, to discuss Gen Zers’ financial situation and what they can do to improve it. This interview has been edited for length and clarity. Why are we seeing that Gen Z is tapping into their credit more than their Millennial counterparts 10 years ago? If you think about prices and the cost of living, a lot of what we’ve seen elevated are the things that Gen Z are most likely going to be spending a good portion of their income on. Rent being a huge piece, and we’ve seen double digit increases in rents over the last several years. But even things like food, dining out, gas prices, prices for automobiles and transportation. All of those have seen significant increases. Most Gen Z consumers are not homeowners. They’re renters or living with family or friends. But in those cases where they’re renters, they’re seeing that additional bite that certainly those homeowners that have their homes prior to 2022 haven’t faced. You own your home, your mortgage typically doesn’t vary, but your rent does. And so I think that’s been a big cause of what’s been driving a lot of that financial strain that Gen Z consumers have seen. Do you have any advice for Gen Zers who may find themselves in a difficult financial situation? One of those things that consumers need to realize is, yes, not everybody has the means to pay off their credit cards in full every month. But the cycle of continuing to spend on your credit cards and just paying off the minimums will create opportunities for you to continue to accumulate debt. And it’s going to take a very long time to pay off your credit card balances just paying the minimums every month, particularly if you continue to use those cards. So, understanding what you can afford, what you can spend on (is important). In some cases, consumers have very high debt levels. The opportunity to refinance credit card debt with a less expensive form of debt. Personal loans are a good option for that. You’re forced to make a material payment every month, and consumers can consolidate their credit card debt onto a cheaper form. Over a course of a couple of years, they can pay that off. The key is to not use the personal loans to pay off credit card debt and then run your credit card bills right back up after you do that. Is it fair to say that there is cause for concern when it comes to Gen Z’s financial health, but the situation is more of a wait-and-see than a crisis? I think that’s a very correct assessment. Again, we’ve seen that average credit card balances per consumer, are, even inflation adjusted, 26% higher than they were for Millennials a decade ago. So this is a consumer that has increasingly turned to debt. But even with the higher delinquency levels that we’re seeing, we don’t think that this is necessarily a cause for alarm. Certainly with Gen Z consumers, they are potentially at a stage in their careers where they may see fairly material and rapid salary increases as they go from that first job, either get promoted or take on (other) roles within their organizations or look for new jobs where they have increased earnings opportunities. But at the same time … make sure that again, you’re borrowing and spending within your means. UK exits recession in ‘fragile’ recovery ahead of election The United Kingdom has come out of a short and shallow recession, giving Prime Minister Rishi Sunak a sorely needed boost ahead of an election expected later this year, report my colleagues Hanna Ziady and Anna Cooban. Gross domestic product grew 0.6% in the first three months of the year compared with the previous quarter, data from the Office for National Statistics (ONS) showed Friday. The increase follows falls of 0.3% in the fourth quarter and 0.1% in the third quarter of last year. A recession is commonly defined as two consecutive quarters of economic contraction. The expansion early this year was driven by “widespread growth” in the dominant service sector, where output ticked up 0.7% during the quarter after dipping late last year, the ONS said. According to projections published Thursday, the Bank of England now expects UK GDP to grow 0.5% this year, double the pace it forecast in February. By comparison, last year, GDP increased by a measly 0.1%. There are other signs the economy’s prospects are brightening. In April, combined output in manufacturing and services recorded the strongest rise in almost a year, according to a survey of purchasing managers compiled by S&P Global. Again, service firms drove the expansion. However, compared with its peers, the UK economy is faring less well. Read more here. Up Next Monday: Federal Reserve Vice Chair Philip Jefferson and Cleveland Fed President Loretta Mester deliver remarks. Tuesday: Earnings from Home Depot, Jack in the Box and Alibaba. The US Labor Department releases its Producer Price Index for April. The NFIB releases its latest small business index. Wednesday: Earnings from Cisco Systems. The US Labor Department releases its Consumer Price Index for April. The US Commerce Department releases April figures on retail sales. The National Association of Home Builders releases its NAHB/Wells Fargo Housing Market Index for May. Minneapolis Fed President Neel Kashkari delivers remarks. Thursday: Earnings from Walmart, Applied Materials, Deer & Co and Baidu. The US Labor Department reports the number of new applications for jobless benefits in the week ended April 11. The US Commerce Department releases April data on housing starts and building permits. Friday: The Conference Board releases its US leading economic index for April.