Article Sidebar

Download
Download PDF

Main Article Content

Abstract

The rapid expansion of digital financial services, particularly Buy Now Pay Later (BNPL), online lending platforms, and e-commerce credit systems, has transformed consumption patterns among Generation Z. Although these services improve financial accessibility and transactional convenience, concerns have emerged regarding their psychological consequences, including anxiety, financial stress, compulsive buying behavior, and declining mental well-being. This scoping review aims to map existing evidence regarding the relationship between digital consumer debt and mental well-being among Generation Z consumers. This review employed the PRISMA Extension for Scoping Reviews (PRISMA-ScR) framework. Relevant articles published between 2019 and 2025 were identified from Google Scholar, Scopus-indexed journals, PubMed, and ScienceDirect using keywords related to BNPL, digital debt, fintech lending, Generation Z, and mental health. Inclusion criteria focused on empirical and review-based studies discussing digital borrowing behavior and psychological outcomes among young adults and Generation Z populations. A total of 15 eligible studies were analyzed. The findings indicate that digital consumer debt is consistently associated with elevated financial stress, anxiety symptoms, impulsive purchasing tendencies, emotional instability, and reduced financial well-being among Generation Z users. Several studies also highlight the role of financial literacy, self-control, and social media influence as moderating factors affecting borrowing behavior. Furthermore, easy accessibility and low perceived borrowing barriers contribute to debt normalization among younger consumers. The rapid expansion of fintech lending ecosystems therefore requires balanced approaches that simultaneously promote financial innovation, consumer accessibility, and psychological well-being protection. Without adequate financial literacy and responsible regulatory frameworks, the continued normalization of digital consumer debt may increase mental health vulnerabilities among younger generations in increasingly digitalized societies. This review concludes that while digital lending technologies provide short-term economic flexibility, excessive reliance on consumer debt may negatively influence mental well-being among Generation Z. Policymakers, educational institutions, and fintech providers should strengthen financial literacy initiatives and implement responsible lending regulations to minimize psychological risks associated with digital debt exposure.

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Kaparang, G. F., Lumingkewas, C., & Ambalao, S. (2026). Digital Consumer Debt and Mental Well-Being in Generation Z: A Scoping Review. Economics and Digital Business Review, 7(2), 279–296. https://doi.org/10.37531/ecotal.v7i2.3883
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abed, S. S. (2024). Understanding the adoption of Buy Now Pay Later (BNPL) apps among Generation Z consumers. Sustainability, 16(15), 6368. https://doi.org/10.3390/su16156368
  2. Asian Development Bank. (2023). Fintech and financial inclusion in Southeast Asia: Emerging opportunities and challenges. Asian Development Bank Publishing.
  3. Azzahra, S. (2026). Reframing debt in Buy Now Pay Later schemes. Ekualisasi Journal.
  4. Brown, S., Taylor, K., & Wheatley Price, S. (2005). Debt and distress: Evaluating the psychological cost of credit. Journal of Economic Psychology, 26(5), 642–663. https://doi.org/10.1016/j.joep.2005.01.002
  5. Business Insider. (2025). Buy now, pay later loans will soon hit credit scores.
  6. Consumer Financial Protection Bureau. (2022). Buy now, pay later market trends and consumer impacts. Consumer Financial Protection Bureau.
  7. Consumer Financial Protection Bureau. (2023). Buy now, pay later: Market developments and consumer risks. Consumer Financial Protection Bureau.
  8. Disney, R., & Gathergood, J. (2013). Financial literacy and consumer credit portfolios. Journal of Banking & Finance, 37(7), 2246–2254. https://doi.org/10.1016/j.jbankfin.2013.01.013
  9. Dittmar, H. (2005). Compulsive buying: A growing concern? An examination of gender, age, and endorsement of materialistic values as predictors. British Journal of Psychology, 96(4), 467–491. https://doi.org/10.1348/000712605X53533
  10. Drentea, P., & Reynolds, J. R. (2012). Neither a borrower nor a lender be: The relative importance of debt and socioeconomic status for mental health among older adults. Journal of Aging and Health, 24(4), 673–695. https://doi.org/10.1177/0898264311431304
  11. Fairness Foundation. (2025). No money, more problems: Negative wealth among young adults.
  12. Fitch, C., Hamilton, S., Bassett, P., & Davey, R. (2011). The relationship between personal debt and mental health: A systematic review. Mental Health Review Journal, 16(4), 153–166. https://doi.org/10.1108/13619321111202313
  13. Gathergood, J. (2012). Self-control, financial literacy, and consumer over-indebtedness. Journal of Economic Psychology, 33(3), 590–602. https://doi.org/10.1016/j.joep.2011.11.006
  14. Gebeyehu, F. (2023). Buy now, pay later: Assessing the financial and psychological risks [Bachelor’s thesis, Blekinge Institute of Technology].
  15. Investopedia. (2022). Why Gen Z consumers prefer Buy Now, Pay Later.
  16. Khoirunisa, R. (2025). Financial literacy versus Buy Now Pay Later among Generation Z consumers. Mahardika Journal.
  17. Laleb, A. D. L. (2026). Perspektif theory of planned behavior pada Generasi Z dalam penggunaan PayLater. JMDB Journal.
  18. Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy: Theory and evidence. Journal of Economic Literature, 52(1), 5–44. https://doi.org/10.1257/jel.52.1.5
  19. O’Neill, B., Sorhaindo, B., Xiao, J. J., & Garman, E. T. (2005). Financially distressed consumers: Their financial practices, financial well-being, and health. Journal of Financial Counseling and Planning, 16(1), 73–87.
  20. PYMNTS. (2022). Buy now, pay later tracker survey.
  21. Richardson, T., Elliott, P., Roberts, R., & Jansen, M. (2017). A longitudinal study of financial difficulties and mental health in a national sample of British undergraduate students. Community Mental Health Journal, 53(3), 344–352. https://doi.org/10.1007/s10597-016-0052-0
  22. RSIS International. (2025). The impact of BNPL services on impulsive buying behavior among Generation Z in Malaysia.
  23. Sarifuddin, S. (2025). Buy now, pay later or pain later? A qualitative study on the adoption of BNPL and financial risks among Generation Z consumers in Klang Valley. International Journal of Social Policy and Society, 21, 73–89.
  24. Sweet, E., Nandi, A., Adam, E. K., & McDade, T. W. (2013). The high price of debt: Household financial debt and its impact on mental and physical health. Social Science & Medicine, 91, 94–100. https://doi.org/10.1016/j.socscimed.2013.05.009
  25. The Guardian. (2025). Gen Z and young millennials battling negative wealth as debt burden grows.
  26. TIME Magazine. (2021). Buy now, pay later apps are taking over holiday shopping season.
  27. Tokunaga, H. (1993). The use and abuse of consumer credit: Application of psychological theory and research. Journal of Economic Psychology, 14(2), 285–316. https://doi.org/10.1016/0167-4870(93)90004-5
  28. Tricco, A. C., Lillie, E., Zarin, W., O’Brien, K. K., Colquhoun, H., Levac, D., Moher, D., Peters, M. D. J., Horsley, T., Weeks, L., Hempel, S., Akl, E. A., Chang, C., McGowan, J., Stewart, L., Hartling, L., Aldcroft, A., Wilson, M. G., Garritty, C., … Straus, S. E. (2018). PRISMA extension for scoping reviews (PRISMA-ScR): Checklist and explanation. Annals of Internal Medicine, 169(7), 467–473. https://doi.org/10.7326/M18-0850
  29. Turunen, E., & Hiilamo, H. (2014). Health effects of indebtedness: A systematic review. BMC Public Health, 14, 489. https://doi.org/10.1186/1471-2458-14-489
  30. World Health Organization. (2022). World mental health report: Transforming mental health for all. World Health Organization.