C&R Software survey reveals rising financial pressures, changing consumer expectations among Gen Z

FAIRFAX, 30 January 2026 — C&R Software today announced findings from its latest consumer survey, conducted in partnership with Ipsos, highlighting the growing financial vulnerability of younger adults and the evolving role of technology in debt resolution.

Beginning with 1,005 U.S. adults, the survey finds nearly one in three respondents (32%) reported having a debt of theirs ever enter collections.

Among those with debt collection experience (378 U.S. adults unweighted), the following three key trends were identified:

1. Younger Consumers Face Increasing Financial Strain

Despite their limited time in the workforce, Gen Z already represents 18% of those affected with debt collection experience. Credit card balances and medical bills remain the most common debt types, but Gen Z shows a more diverse mix, including higher rates of student loans (34%) and personal loans (24%). Cited reasons behind these delinquencies among all adults with debt collection experience, including Gen Z, include job loss, cash flow problems, and insufficient funds.

2. Digital Engagement Is Essential

While email remains the most preferred communications method for collections purposes overall, Gen Z adults with debt collection experience express directionally stronger interest in digital-first options such as SMS, self-service portals, and chat. 64% of Gen Z and 65% of Millennials report interactions with automated systems: nearly double the rate of older generations. Importantly, 70% of Gen Z adults with debt collections experience said these experiences interacting with an automated system were as good as or better than human interactions.

3. Technology Alone Isn’t Enough

More than half (57%) of all U.S. adults with debt collections experience state being extremely or very concerned with loss of personalization with automated debt collection tools. While two-thirds (65%) claim to have resolved their most recent debt, more than half (58%) indicate it took between four months and two years to do so. Uptake of financial assistance programs remains low among younger consumers who resolved their debt, underscoring the need for holistic strategies that combine automation with humanity and access to financial health resources.

“These findings reinforce what we’ve long believed: technology can accelerate resolution, but trust and personalization remain critical,” said Ed Wallen, CEO at C&R Software. “Organizations that blend AI-driven efficiency with humanized support will be best positioned to meet the needs of today’s consumers.”

For more information on how C&R Software helps financial institutions modernize collections and recovery, visit crsoftware.com.

About C&R Software

C&R Software delivers AI-native, cloud-based solutions that empower organizations to manage collections and recovery with speed, compliance, and humanity. Our flagship solution, Debt Manager, helps clients resolve debt faster while building lasting customer relationships.