Consumers in the U.S. have over $1 trillion in credit card debt, for the first time ever, according to a new report out this week from the Federal Reserve Bank of New York. The recipe for this record high number? Inflation, high interest rates, and increased access to credit.

Paul Siegfried with the TransUnion credit bureau points out there are more people with credit cards today than there’ve ever been before. And a lot of them are young. 

“Gen Z has come into its own as a credit using generation,” said Paul Siegfried with TransUnion credit bureau.

TransUnion, which defines Gen Z as those born between 1995 and 2005, says that group is growing credit card balances at a faster pace than any other generation. 

And with inflation, people of all ages may be relying on credit more, but young people are more confident they’ll be able to pay it back. 

“They believe that their future income will allow them to pay off the money they borrowed today,” Siegfried said.

Still, money borrowed today is more expensive than money borrowed last year.

And Heather Aiello of the National Association of Certified Credit Counselors, said not all consumers realize that. 

“So their balances are growing, not just because they’re spending more, but based on the interest that they’re paying,” she said.

Aiello said education is key to helping the next generation use credit cards wisely, and pointed out more states are requiring schools to teach classes in personal finance.