More than half of young adults have debts
June 4, 2019
More than half of young people between the ages of 18 and 27 had debts in the last twelve months. Almost a third of the young adults had some kind of loan. In addition, 28 percent had a student loan. This is according to a report from the Ministry of Social Affairs and Employment (SZW).
To gain insight into the attitude and behavior of young adults towards debt, more than 1,500 surveys were conducted. In addition, 29 young people were extensively questioned about finances, debts and borrowing money.
Borrow money and loans
Until now, little was known about the financial behavior of young people between 18 and 27 years old. Research by the Ministry of Social Affairs and Employment shows that young people mainly borrow money from the DUO government department. At DUO, students can borrow during their study time. Young people also often turn to their parents (12 percent) or other family and friends (6 percent) for loans. Only 3 percent opted for a personal loan or revolving credit with a financial institution.
The survey did not only ask for loans. Also in red and overdue bills were discussed. Approximately one fifth of the respondents mentioned red. A slightly large group, almost 25 percent, did not pay a bill on time. For most, the amount that they had open was not too bad and the debt remained below 50 euros. Yet about 15 percent of young adults had to contend with risky debts due to a regular red card, a credit card debt or not paying the rent on time.
Debts give a bad feeling
Young adults find it annoying to have debts. The in-depth interviews even showed that the debts of a few people lead to sombre feelings or even depression. Young people turn to parents or friends for help. Official agencies will not approach them quickly. However, these authorities can play a role in countering debts. Young people between the ages of 18 and 27 also benefit from financial education and information about borrowing money and debts.