Over half of young women have to borrow to make their money last to the end of the month, highlighting the effects of stagnating wages, insecure labour and increasing prices on millennials.
A poll of 4,000 people aged 18-30 reveals that 51 percent of young girls and 45 percent of young men frequently use credit to extend their finances prior to payday. The report also found that a quarter of young people in the united kingdom are always in debt.
The next most popular type of borrowing by people in the age group has been using a credit card.
One in 10 said they’d used a payday advance company, although for parents aged under 30, this amount increased to one in four.
The results follow a collection of reports by debt charities demonstrating a growth in the number of individuals seeking help with personal debts and arrears on household bills.
The debt charity StepChange stated it was worried about a steep rise in the amount of under-40s and tenants who were fighting to make ends meet, adding to the tendency for low-income households to rely on credit to purchase essential items.
The charity’s chief executive, Carole Easton, said: “Young men and women tell us they need to work hard and be financially independent but as costs rise and wages stay low, more and more are fighting.
“Young girls are more likely to be stuck on low pay and on zero-hours contracts, which mean that they do not know how many hours they will work monthly and if they’ll earn enough to pay their bills.
“It can be especially tough for young mums; in many instances, very low pay means an hour childcare can cost more than an hour’s salary.
Easton, a former chief executive of ChildLine, said 25 percent of young people considered their amount of debt had got worse in the last year and 61% hope to be still in debt when they are aged 40.
She cautioned that left young people with “little hope for the future”, particularly as the Bank of England has hinted in recent days that it’s very likely to increase interest rates in the not too distant future.
“The stress is many young people will be pushed farther into debt,” she said.
“Much more needs to be done in order to enhance young people’s prospects. This means giving them the ideal skills and support to find jobs, ensuring adequate and flexible jobs are available, and paying for a proper living wage which does not discriminate against age. This would benefit companies and the market too.”
The Young Women’s Trust will publish its whole poll in a new report, Worrying Times, by the end of September.
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