People in Britain under the age of 35 appear to be willing to dice with debt in order to see them through the festive season this year, a new study ha…
People in Britain under the age of 35 appear to be willing to dice with debt in order to see them through the festive season this year, a new study has indicated.
Research carried out by The Co-operative Group has shown that a number of individuals in this age range feel under pressure to borrow money in order to finance Christmas and the organisation has labelled this group a Generation Recognised in Need of Credit Help (GRINCH).
The body warned those who come under this umbrella term are in danger of making financial decisions now that will adversely affect their monetary situation down the line.
It was discovered one-in-three people who are yet to reach their mid-thirties believe they need to borrow cash in order to see them through the yuletide period.
The study, which was issued by The Co-operative Electrical – a part of the Co-operative Group – found individuals between the ages of 24 and 35 are more than twice as likely to have been declined a loan or overdraft.
In addition, more than half of these young adults admitted they are unaware of the Annual Percentage Rate charged on their borrowings.
Around a third of those surveyed revealed they would turn their focus to using credit cards if they were not granted a loan or an overdraft.
David Sanderson, from the organisation, said: “The social consequences of poor money management coupled with a lack of understanding of the true cost of borrowing can have long term implications for both individuals and communities.”
The report follows research recently carried out by Aviva, which showed adult children are piling on financial pressure to their parents by continuing to expect handouts to help fund major investments.
By Joe White