The latest generation of British workers is being dubbed the debt-eration, as new figures have revealed that six out of ten people in the 18 to 30-year-old age group are already trying to get out of debt.
Many financial experts agree that the last five years have been among the hardest in living memory for the UK economy and it is no surprise research from The Co-operative Group has found the generation of young people who have been leaving education and trying to make a living in this period are finding themselves struck by money issues.
According to the report, almost a third (31 per cent) are not feeling financially independent and the 18 to 30-year-olds are seeing debt as a part of everyday life, with 77 per cent of this age group stating that they are simply not fazed by it and that owing money is a normality.
Despite the laid-back attitude, the debts could be problematic. On average, young adults are earning £7,187 less than they expected, while more than two out of five receive a salary which is less than they thought they would be earning at this point in their lives. These facts could make it much harder to sustain the sort of lifestyle they may be living at the moment.
The study revealed a huge majority (84 per cent) of the under-30s in the UK admit they have needed to turn to their parents for some level of financial support since they moved out from the family home. They asked for money to help pay their debts, purchase property, put food on the table and even fund holidays.
However, despite the ‘Bank of Mum and Dad’ being there to help the youngsters with their arrears, almost a third of the 18 to 30 age group are hiding further debts from their parents. The Co-op estimates the average secret debt among young British adults to be £3,579.
The young workers stated that the main reasons for their high debt levels are the costs of studying and education, credit cards and other forms of personal credit such as loans and overdrafts.
Despite the perceived normality of debt, the money situation could be affecting other aspects of their lives, as the research suggested that two-fifths are dissatisfied with their lives so far, with significant causes of stress being cited as the lack of disposable incomes not being able to get enough sleep at night.
Debt Legal’s Jonathan Matthews has more than a decade’s worth experience of helping all age groups get out of debt and he believes that the attitude to debt is changing in the UK.
He said: “The difficult economic situation means that more people are experiencing debt, which naturally has a desensitising effect.”
However, Mr Matthews warned that this could be leave many youngsters with financial burdens for much longer than is necessary.
The expert concluded: “Constant arrears do not necessarily need to be a way of life and there is a range of government-backed solutions available to people – of all ages – who want to become debt free and look forward to the rest of their lives.
About Jonathan Matthews
Jonathan Matthews has more than 15 years’ experience helping people become debt free. He has worked as a debt advisor for some of the most biggest debt management companies in Great Britain and his work getting people out of debt has made him well respected within the financial sector. Jonathan enjoys blogging and likes to share his insight regarding debt and finance.
