Young Renters ‘At Risk and Already an Indebted Generation’
August 7, 2017
Renters aged between 25 and 34 throughout the UK are among the country’s most financially at-risk people and are collectively a heavily indebted generation.
That’s according to a report compiled by the insurance firm LV=, which suggests that 44 per cent of renters in the ‘late-Millennial’ category aren’t confident of their ability to cope with any kind of personal financial crisis.
A similar percentage (43 per cent) say that they are not able to save any amount of money on a monthly basis.
Worryingly, just over a third of late-millennial respondents said that they could not last more than one month financially if they were to lose their income for any reason and that number jumped to 45 per cent among 25 to 34 year olds who rent their homes.
Around a third (32 per cent) of the renters polled by LV= in this age bracket said that their credit card debts are an important reason why they are unable to save.
A majority and around 51 per cent of late-millennial renters across the UK apparently have some form of unsecured debt and roughly 20 per cent are £5,000 or more in the red.
Furthermore, 21 per cent of people in this category told LV= recently that they were using an unauthorised overdraft facility via their bank accounts, which is twice the average figure for UK adults as a whole.
“It’s worrying that so many older Millennials have no idea how they would cope in a personal financial crisis, but those stuck in the cycle of renting are suffering even more,” said Justin Harper, head of policy for protection at LV=.
“It’s clear that people in this ‘Generation Debt’ are at risk of finding themselves struggling to make ends meet if they lost their income.”
LV= has called on the government to find more ways to encourage younger generations of people in particular to set money aside on a regular basis to avoid falling into serious debt problems and a personal financial crisis.
If you live anywhere in Scotland and you are finding it tough to cope with your financial pressures or your debt problems then Scotland Debt Solutions can help. Contact your nearest offices to arrange a free consultation.