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One in five young people’s finances ‘out of control’

Seven in 10 regular borrow to pay for bills or living expenses

One in five young people in Britain say their finances are out of control, a poll shows.

The survey by Neyber, the financial wellbeing company, also found 70% of people under 34 need to regularly borrow, either to pay their monthly bills or deal with day-to-day living expenses.

Payday lenders are more commonly used by the young, with 8% of 18-24 year olds having used one, compared with no one over the age of 65.

According to the Money Advice Service, 18% of young adults have borrowed money from a friend or a family member to pay for necessities like bills and 61% agreed that their life would improve if they could manage their money better.

Heidi Allan, head of employee wellbeing at Neyber, said job uncertainty, fluctuating wages, university loans and increasing property rental costs are causing many young people to seek out unnecessarily expensive loans and other forms of credit just to support day-to-day living.

“One of the many impacts is that they aren’t able to create savings – for a buffer when they need extra financial support or a deposit on their own home. Good financial wellbeing is far too remote for far too many young people today,” she warned.

Allan said employers can help because being paid for the first time is one of life’s many milestones and the beginning of a lifelong relationship with earning, saving and spending money.

“Getting that relationship right from the start is the basis for good financial wellbeing, and employers have a unique opportunity to help young employees when they first join the workforce,” she stated.