'This is not a joke': 20-year-old Texas woman spends 70% of her income on rent and has racked up $4,000 in credit card debt. She laughs it off as 'girl math.' Caleb Hammer responds

“This is not a joke,” responded Hammer.

On top of managing hefty debt, she spends a ludicrous amount of her income on rent.

Rylie doesn’t seem to realize the impact of her personal spending habits.

Reckless spending

Rylie’s a part-time student and a full-time receptionist at a local budget hotel. Her monthly income is around $2,000, which could be enough to live on if she didn’t have a budgeting problem.

Rylie spends $1,400 a month — 70% of her income — on rent. That’s above the average rent in San Antonio, which is $1,290 according to RentCafe. In fact, 24% of apartments in the city can be rented for $1,000 or less.

“You cannot afford it,” Hammer explained. General wisdom among finance experts is that housing costs should account for about 30% of a person’s income.

Overspending on housing leaves little room for Rylie’s other expenses. However, that hasn’t stopped her from frequently eating out and shopping online. These expenses are funded from her credit cards. Her credit card debt, at its peak, was around $4,000.

By comparison, Gen Z Americans — aged 18 to 26 — have an average of $3,262 in credit card debt, according to Experian’s latest consumer debt report. This cohort has been borrowing at a faster rate than others. Gen Z’s total debt balance grew 15.4% in 2023.

Younger Americans might also have access to another source of credit: their parents.