Half of Under 35s ‘Couldn’t Pay Bill Worth £250 Without Relying on Debt’

May 26, 2017

Around half of all British adults aged under 35 wouldn’t be able to pay off an unexpected bill worth £250 or more without resorting to some form of debt.
That’s according to the credit information company Experian, whose research suggests that there could be as many as 3.5 million young adults around the UK who are getting by financially with little or no savings to drawn upon.
Experian’s investigations indicate that many of these people “earn relatively good money” but nonetheless find themselves renting their homes rather than buying them and relying on debt to a much greater extent than their counterparts of older generations.
The credit information company is calling people who fall into this category ‘YERNS’, in reference to the idea that they are young, earning and renting but have no savings.
As many as 79 per cent of YERNS are believed to have outstanding debts of some kind and around two million in the UK are currently estimated to have no money at all set aside as savings.
And were they to be hit with an unexpected bill worth £250 or more, half would be forced to use credit or to borrow money from friends or family to cover those costs.
YERNS are estimated to make up a little under a third of all adult consumers in the UK and they are generally much more likely than most to use credit cards or a personal loan to cover their household bills. “Living in an overdraft has become second nature for many people 35 and under,” says Richard Jenkins from Experian.

“The result is many young families and individuals are living beyond their means and so when unplanned costs occur, it can tip them over the edge. “With interest rates at an all-time low and credit card debt – especially among YERNS – at an all-time high, this generation is especially vulnerable to increases in inflation and any potential rise in interest rates.”
If you live anywhere in Scotland and your personal debts are becoming or have long been a real problem then Scotland Debt Solutions can help. Contact us today to arrange a free and confidential consultation.

How to clear your council tax arrears with a trust deed

6th March 2018

If you’re worried that the council might take action against you for non-payment of council tax, entering into a Scottish trust deed can be a beneficial step. It stops legal action by all creditors included in the arrangement, and provides a ‘safe haven’ from which to regain control of your finances. As council tax arrears […]

Read more

How to restore credit rating after Scottish debt programme has been satisfied

5th March 2018

A debt payment programme (DPP) remains on your credit file for six years, along with other default markers and court judgments that have been made against you. This can seriously affect your ability to borrow for this period of time, and longer. Even if you can secure borrowing, lenders are only likely to offer unfavourable […]

Read more

I’ve received a Simple Procedure Notice of Claim – what now?

4th March 2018

If you owe a debt of £5,000 or less, your creditor may send you a Simple Procedure Notice of Claim. This is a relatively new procedure that was brought in by the Scottish government and commenced on 28th November 2016 – their intention being to make it easier to resolve debt disputes. So if you’ve […]

Read more

What is a Bankruptcy Restriction Order? (BRO)

1st March 2018

A Bankruptcy Restriction Order may be made against you if it’s believed that you acted dishonestly, recklessly or unlawfully before you were made bankrupt, or during your bankruptcy. Your Trustee will inform the Accountant in Bankruptcy (AiB), and if their suspicions are upheld, a BRO of 2-15 years can be made depending on the seriousness […]

Read more

What does the DAS Fair and Reasonable Test entail?

28th February 2018

Debt payment programmes (DPPs) are an intrinsic part of the Debt Arrangement Scheme, which allows you to pay off unsecured debt at an affordable rate. If a debt payment programme is rejected by one or more creditors, the DAS Administrator can apply their discretion on whether to approve the plan, after using a test to […]

Read more

How do I apply for a Debt Payment Programme (DPP)?

26th February 2018

If you’re struggling to pay your unsecured debts, a debt payment programme could help you to regain control of the situation, and become financially stable again. Debt payment programmes are a fundamental part of the Debt Arrangement Scheme (DAS) in Scotland, and allow you to repay over a longer period of time. These programmes involve […]

Read more