Survey finds a quarter of millennials are constantly in debt, thanks to low pay, zero-hours contracts and rising prices

This article is more than 3 years old

This article is more than 3 years old

More than half of young women have to borrow to make their cash last to the end of the month, highlighting the impact of stagnating wages, insecure work and rising prices on millennials.

A survey of 4,000 people aged 18-30 shows that 51% of young women and 45% of young men regularly use credit to stretch their finances until payday. The report also found that a quarter of young people in the UK are constantly in debt.

When asked how young people made their cash last to the end of the month, one in five said they used their overdraft and a similar number borrowed from family. The next most popular form of borrowing by people in the age group was using a credit card.

One in 10 said they had used a payday loan company, although for parents aged under 30, this number increased to one in four.

The Young Women’s Trust, which commissioned the representative sample of young people, said many of those questioned in the survey also worked extra hours or skipped meals to make their cash stretch to the end of the month.

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The results follow a series of reports by debt charities showing a rise in the number of people seeking help with personal debts and arrears on household bills.

The debt charity StepChange said it was concerned about a steep increase in the number of under-40s and renters who were struggling to make ends meet, adding to the trend for low-income families to rely on credit to buy essential items.

The Young Women’s Trust, which began 150 years ago as the Young Women’s Christian Association (YWCA) and was renamed in 2013, provides services for women aged 16-30 “trapped by low or no pay and facing a life of poverty”.



The charity’s chief executive, Carole Easton, said: “Young people tell us they want to work hard and be financially independent but as prices rise and wages remain low, more and more are struggling.

“Young women are more likely to be stuck on low pay and on zero-hours contracts, which mean they don’t know how many hours they will work each month and whether they will earn enough to pay their bills.

“It can be particularly hard for young mums; in many cases, low pay means an hour’s childcare can cost more than an hour’s wages. As a result, many are failing to make ends meet and are falling into debt,” she added.



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Easton, a former chief executive of ChildLine, said 25% of young people believed their level of debt had got worse in the past year and 61% expect to be still in debt when they are aged 40.

She warned that left young people with “little hope for the future”, especially as the Bank of England has hinted in recent days that it is likely to raise interest rates in the near future.

“The worry is many young people will be pushed further into debt,” she said.

“Much more needs to be done to improve young people’s prospects. This means giving them the right skills and support to find jobs, ensuring decent and flexible jobs are available, and paying a proper living wage that doesn’t discriminate against age. This would benefit businesses and the economy too.”



The Young Women’s Trust will publish its full survey in a new report, Worrying Times, at the end of September.