Nearly one in ten young adults between the ages of 19 and 29 state that they partially provide themselves with short-term credit or consumer loans. Debt Management warns.
Many young adults live on consumer loans
In a survey that YouGov conducted for Nordea after nearly a thousand people the trend was displayed. A total of 8 percent of those asked between 19 and 29 years old report that they “provide” themselves with short-term debt. The bank’s own consumer economist, Elin Reitan, says to E24 that the discovery is worrying - writes norwaytoday.info
“It’s quick way to end up in a financial disadvantage when you have to rely on expensive loans to cover living expenses. If you go in minus every single month it’s also hard to get rid of the consumer debt,” she says.
Also, the director of active debt collection, Iman Winkelmann, believes the discovery should raise concern because the use of expensive short-term debt can quickly have major consequences for young adults if their life situations should change.
– “Young adults should be wary. We also see that more young people use consumer loans to finance housing purchases, which makes them extra vulnerable,” says the collection summit.
Norwegians’ consumption of consumer loans increased by 11.4 percent last year, according to figures from the Danish Financial Supervisory Authority. Short-term debt totaled NOK 106 billion at year-end.
Last year’s increase in consumer loans occurred despite the fact that there was also a 15 percent credit growth from 2016.
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