Older Millennials See Sharp Increase in Money Worries
October 14, 2020
The pandemic of 2020 and its myriad consequences has added to the money worries of millions of people across the UK and that has certainly been the case for a lot of so-called older millennials.
According to polling by the market research company Mintel, people between 30 and 40 years old are the most indebted generation in the country but they’ve generally been the most relaxed about being in arrears.
However, the comfort levels that ‘older millennials’ tend to have about their debts have changed significantly because of the way 2020 has unfolded.
Mintel’s research suggests that while just over a quarter of 30 to 40-year-olds were worried about their debts in June 2019, by a year later that figure had increased sharply to more than a third (35 per cent).
Roughly two fifths of older millennials have unsecured debts worth more than £2,000, compared with around 26 per cent of the adult population of the UK as a whole.
And while money worries are rising among older millennials, their younger counterparts are also grappling with financial concerns of their own.
According to Mintel’s research, roughly a fifth (17 per cent) of all Brits aged between 20 and 40 admit that they can’t trust themselves with money and 30 per cent say their debts have had negative impacts on their relationships at times in their past.
At least one in five older millennials have changed their perspective on debt in recent months, with 20 per cent saying they have been putting off making big purchases on credit because of the Covid-19 situation.
“Before COVID-19, older millennials were, by far, the most heavily indebted age group, having relied on unsecured debt over the past few years,” explained Thomas Slide, senior research analyst at Mintel.
“Despite this, they had also been fairly relaxed about the scale of their borrowing. The economic shock caused by lockdown has shaken their confidence.”
Mr Slide went on to suggest that for older millennials, the pandemic could be seen as having prompted a complete “sea-change” as far as their attitude towards debt is concerned.
“Many will look to reduce the amount they owe and are likely to adopt a more cautious approach to borrowing and consumer spending even after the crisis has passed,” he said.