With inflation skyrocketing and increased costs of living affecting many households, not many are left unscathed. Over 1.8 million young adults aged 18-24 years in the UK are facing financial hardships.
Worse yet, individuals sitting in this age group are unlikely to seek support and advice concerning financial debt and loans. Because of this, when considering the option of a loan it is a good idea to go through reliable sites for loan comparison such as Better Compared which can help to weigh your options and find an offer that is suitable for you.
Better Compared is a new website that provides lists and comparisons of reliable lenders as well as a variety of loans. They’ve partnered with several banks from all over Europe and are in the midst of expanding to other countries. Their goal is to help you make an informed decision about what loan to take out and from whom.
Table of Contents
Over 2,000 young people took part in an online survey set to be representative of young adults throughout the UK. This survey was conducted on 18- to 24-year-olds about their experiences of money matters including taking out loans and falling into debt.
Some of the main findings from this study include:
Financial worries. 51% of the study participants regularly experience worries about financial matters. 32% of this group experience significant stress about their financial situation which leads to difficulty sleeping. Moreso, women were found to be more affected than men by money stresses.
Debt. Unfortunately, keeping on top of loan payments isn’t as clear cut as one might hope. 10% of young adults that have borrowed money have missed at least one payment in the past year. The same goes for those paying household expenses and bills, where again 10% haven’t paid one or more in the past 12 months. 7% missed one mortgage payment or more in the past year as well.
Money management. The good news is that many young people are actively trying to take control of their finances in a positive way. For example, 71% keep on track of their spending by checking their bank account regularly and 69% set a budget. However, 42% found that keeping track of their incomings and outgoings was harder than anticipated.
Taking out loans. Individuals aged from 18-24 owe on average just under £3,000. This doesn’t include student loans, where this would cost an additional £25,505. 37% of this age group have used credit cards to take out loans and overdrafts – and goes up to 67% if you include mortgages and student loans.
While these findings are seemingly grim, this should point to what can be done to prevent this for both present and future generations.
Recommendations for a brighter future
Incorporating a healthy financial practice with personal finances can begin with some simple preparation and support by both financial and educational institutions:
- Education on financial matters should be implemented in primary school and should be continuously incorporated throughout the curriculum.
- Regarding student loans, the government could arrange for monthly payments to help graduates manage their money better.
- In-depth financial advice should be offered to young people who are looking into credit card and loan options.
- The rising costs of living should be taken into account for payment requirements.