A growing number of Gen Z consumers are finding themselves financially stretched after covering expenses for friends and family, with many never receiving the full amount back, according to a new report. Research conducted by digital payment platform Zelle found that 76% of Gen Z respondents who paid for shared expenses on behalf of a group were not fully reimbursed. The findings also revealed the financial impact can be significant, with nearly half (47%) reporting they had fallen into debt as a result of waiting for repayments.

Experts say the issue extends beyond finances and can place strain on personal relationships.

Dr. Traci Williams, a board-certified psychologist and certified financial therapist, explained that delayed repayments can create a domino effect on an individual's own financial obligations.

"When you're waiting for money to be returned, it can delay your ability to meet your own financial commitments and goals, whether that's paying bills, saving money, or managing everyday expenses," Williams said.

According to Williams, unpaid debts between friends can also lead to frustration and resentment over time.

"If someone doesn't pay you back, those feelings can develop into anger or disappointment, which may ultimately damage the friendship or relationship," she explained.

To avoid awkward conversations and unpaid debts, Williams recommends establishing clear expectations before agreeing to cover costs for a group.

That means ensuring everyone knows exactly how much they owe, how they should make payment, and when the money is expected to be returned.

"Having a clear conversation upfront about payment amounts and deadlines, and getting agreement from everyone involved, can make the process much smoother," Williams said.

For those already waiting on money from friends or relatives, she advises addressing the issue directly rather than allowing it to linger.

Instead of leaving repayment open-ended, Williams suggests setting a specific date and explaining why receiving the money matters.

"Giving someone a clear deadline — whether that's by the end of the week or another agreed date — helps create accountability and avoids confusion," she said.

Williams also noted that people should carefully consider their own finances before agreeing to repay others or commit to expensive plans.

She encourages individuals to think realistically about the full cost of social events and activities before saying yes.

"It's important to take a moment and assess whether attending something fits within your budget, even if it's an experience you really don't want to miss," she said.

The report also highlights how financial discomfort is influencing social behaviour among younger adults.

According to Zelle's findings, around one in five Gen Z consumers have gone as far as cancelling plans, muting group chats, or avoiding conversations altogether to dodge paying someone back.

While payment platforms such as Zelle and Venmo have made splitting bills and group expenses more convenient than ever, experts say the technology can only go so far. Ultimately, clear communication and financial honesty remain key to preventing unpaid debts from turning into damaged friendships.

For many young adults, the lesson is simple: covering the bill may be easy, but getting reimbursed is often the harder part.