Young adults most reliant on credit

Industry News | 05/11/20

People in the UK continue to feel the strain on their finances due to Covid-19 pandemic with those aged 18 to 24 most affected according to credit reference agency Credit Kudos’ second Borrowing Index.

The survey of 2,000 people across the UK found that almost two in five (37%) of the youngest adults have seen their finances impacted (compared to 26% across the UK), while 43% had to increase their borrowing since the start of the pandemic.
With varying restrictions across the UK to control the spread of Covid-19 as well as a precarious economic outlook, the future financial situation remains uncertain for many young adults. A quarter (23%) state that they have never needed credit more than they do now (compared to 17% across the UK) and one in five (20%) expect to start borrowing or increase their borrowing further over the next three months. Yet, two in five (42%) are afraid that credit is becoming more expensive due to the pandemic.

Source: Credit Connect