Credit, Collections & Insolvency News
Nearly a quarter of 18-24 year olds struggling to afford their household bills with one in 10 18-24 year olds expecting to be made redundant.
Young people are struggling to cope with the financial burden the pandemic has placed upon them, according to new research by comparethemarket.com.
The findings in the company’s Household Financial Confidence Tracker show that nearly a third (30%) are actively trying to find additional sources of income, such as another job, in order to protect their finances should another lockdown be announced. If such an event occurred over a quarter (27%) believe their job would be at risk and 23% are already trying to put money aside to help towards the impact of the recession.
As further lockdown restrictions are announced and the furlough scheme draws to a close, 16 per cent of this age group expect to be made redundant in the near future. Over a fifth (22%) of people anticipate having to take a pay cut or reduce their hours as a result of the pandemic.
A fifth (20%) of 18-24 year olds have struggled to afford their household bills over the last week and the same proportion are not confident that they will be able to keep on top of payments in the coming weeks. Worryingly, 39% have dipped into savings – the highest proportion of any demographic – to cope with the costs of living.
If the Government were to announce another lockdown, 12% would have to take out or extend a payment holiday and nearly one in five 18-24 year olds (19%) said they would have to take on more debt – via a credit card or personal loan, to get by financially.
Anna McEntee, product director at comparethemarket.com, said “Young people have been disproportionately impacted by the pandemic and the Household Financial Confidence Tracker latest findings suggest that these financial pressures show no sign of easing any time soon. Many remain fearful that their employment prospects and salaries are at risk and are taking drastic steps to protect themselves financially – such as taking on additional jobs.”
“As conversations continue around the prospect of another lockdown, there is a real danger that younger people are heading towards a crunch point where they will be required to pay back more debt with less income and savings behind them.”