Two-thirds of those between between the ages of 18 and 34 say they have taken on new debt this year to help cope with the cost-of-living crisis.
According to new research from The Mortgage Lender (TML), 10 per cent of those in this age group have taken out a personal loan since the beginning of 2022. A further 11% have taken out pay-day loans, which typically come at far higher high interest rates.
“Taking on any debt is risky, but to see younger generations take on the insecurity of a pay-day loan is troublesome," TML chief executive Peter Beaumont said.
"As cost-of-living concerns grow with rising energy costs, there’s a concern that later life plans can be severely impacted by the decisions individuals are being forced to make due to the current economic circumstances."
Many of those surveyed were also relying more heavily on buy-now, pay-later schemes, with 18% of 18-24 years olds using them in response to rising costs. Of this an additional 25% have made greater use of their credit card.
The survey also showed that 16% in this age group are using their overdraft more than in previous years.
“While taking on debt may help some to deal with their immediate expense, it’s vital that they take it on with their eyes wide open and with a repayment plan in place," Mr Beaumont added. "This will prevent the situation snowballing out of control and help get back in the clear as soon as possible.”
Former Archaos nightclub in Glasgow to be turned into student flats
The former Archaos nightclub in Glasgow city centre is to be turned into student accommodation, it has been revealed.
Property developer CA Ventures has announced plans to create around 230 beds in the Queen Street site, which has been vacant since Archaos closed its doors for the last time in 2007. The company said the ground floor could also be developed for retail or other commercial uses.
Scottish accountancy firm AAB Group acquires May Figures
Scottish accountancy firm AAB has unveiled a “key acquisition” to expand its research and development tax credit services offering across the UK and Ireland.
It has acquired English professional services firm May Figures Ltd, which was established in 2013 by Julia May and Mark Graves, for an undisclosed sum.
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