The general economic situation means that millions of UK residents struggle for employment. The youth population are among the biggest sufferers.
Youngsters using instant loans have been hit hard by skyrocketing student fees and living costs. Frankly, they are used to facing debt and acclimatised to living off of credit. Taking out another small loan doesn’t feel overly important in the grand scheme of things. After all, what’s a ?200 payday loan compared to a ?27,000 degree that won’t even guarantee a graduate role?
Generally speaking, even young adults who are in employment aren’t earning vast sums of money. If they were, they wouldn’t need to take out the loans in the first place, particularly when they haven’t got as many commitments as older people. As such, paying off a ?500 loan is a lot harder for them than a 35-year-old who is earning ?10,000 more per year.
Jobs are often less secure at the junior and entry levels. Therefore, a young adult may have taken on long-term commitments before losing a job. Even if it only takes a short while to find their next position, they will need cash to see them through.
Youngsters are often still developing, and may not yet have the maturity to borrow money in a responsible fashion. If they find themselves in a difficult situation, they will often panic and rush into a decision rather than thinking it through. Given that payday loans are often the easiest form of credit to gain, this becomes the most attractive prospect.
Likewise, a large percentage of the youth audience hasn’t built the credit history needed to use other forms of lending. Moreover, if they are already worried about their opportunities, the thought of being rejected can deter them. After all, those multiple applications can harm their credit scores.
We live in a world where we often feel that we need those luxury items right now. While this is irresponsible behaviour, the pressures of keeping up with trends can weigh down heavily on a youngster. Similarly, the payday loan may be used to clear store card debts that were built up through prior irresponsibility.
Payday loans often start at just ?50. Let’s face it; students and other young people are less likely to need thousands of pounds because they are yet to have the commitments. As such, payday loans are accessible and accommodating to their situations.
Therefore, payday loans can seem the safer option
Many lenders can process applications online and in a matter minutes. For youngsters who are scared to speak to someone in person, this can be a blessing. Similarly, taking on this debt in a crisis can feel more appealing than admitting a problem to their parents. Even if that does mean ignoring the long-term fallout.Youngsters may not want to take on long-term debt see. While payday loans can be costly, the prospect of clearing the debt fast can be a huge selling point.
Of course, the vast majority of the above points are generalisations. In truth, no two youngsters are the same. Some 20-year-olds will be working full-time jobs while raising a young family and supporting their parents. In those cases, they may well have an even greater level of maturity than someone twice their age.
Spending trends of youngsters return again
Statistics surrounding young people and payday loans do show clear trends. By understanding those reasons, it can be easier for youngsters to make smarter decisions. For parents, it may shine a little light on what can be done to aid the situation too.
Ultimately, it’s tough not to feel at least a little sympathetic to the youth culture. Political issues have made it difficult for youngsters. The difficulty for youngsters is often regardless of whether they’re unemployed, in education, or working full-time. Youngsters using loans for people with no salary to live an independent life is also common.