Savanta ComRes’ latest research for R3, the insolvency and restructuring trade body, reveals that over a third of GB adults (37%) are worried about their current levels of debt.
Two in five Brits say that they sometimes or often struggle to make it to payday (40%)."
Worries about debt levels are particularly likely to affect younger Brits; while half of those aged 18-34 and 35-54 say they are worried about their current level of debt (both 49%), just one in five of those aged 55 and over say the same (18%). Such worries are also more pronounced among those living in rented properties than homeowners (52% vs. 29%), and among women compared with men (41% vs. 33%).
Drivers of debt worries
Credit cards are the biggest concern for those Brits worried about their current levels of debt. Although, overall, more than half (54%) of those worried about their debts are worried about credit card debt, this issue is of greater concern to older than younger British adults (58% 55+ vs. 45% 18-34).
Meanwhile, student loans are identified as the biggest worry for 18-24-year-olds, with a third expressing concern in this area (35%). The changing nature of debt worries across age groups can be witnessed through this finding, given that just one in five 25-34-year-olds (18%) and 6% of those aged 35-44 share similar concerns about student loans.
Struggles to payday
Worryingly, two in five Brits say that they sometimes or often struggle to make it to payday (40%). Nearly twice as many renters say this compared with homeowners (58% vs. 31%), once more indicating a gap in the financial experiences of these two groups. Meanwhile, women are more likely than men to struggle to payday (45% vs. 36%).
The drivers of payday struggles vary when using age as a lens to understand personal circumstances. While older Brits are more likely than younger adults to struggle to make it to payday due to household energy costs (47% 55+ vs. 30% 18-34), those aged 18-34 are more likely to struggle to make it to payday due to spending on going out or on non-essentials than those aged 55 and over (32% vs. 22%), indicating changing priorities between age groups
Responses to sudden gaps in finances
When asked to contemplate how they would address an unexpected gap in their personal finances, the responses of British adults vary notably by demographics. While – overall – half of Brits say they would be most likely to use personal savings to plug this sudden gap (48%), this diverges to 55% of homeowners and 34% of renters. In the same vein, older Brits are more likely than their younger counterparts to turn to personal savings in the event of a sudden gap in their personal finances (40% 18-34 vs. 61% 55+).
Interestingly, more women than men say that asking family or friends for support to tackle an unexpected gap in their finances would be one of their three most likely approaches (45% vs. 36%). Younger Brits are also much more likely than older generations to opt for this approach (61% 18-34 vs. 20% 55+).
Ultimately, several factors are at play in British adults’ experiences of – and concerns around – their relationship with debt. Younger Brits and those living in rented accommodation tend to have higher levels of concerns about debt – as well as different priorities – compared with their older counterparts and homeowners. This heightened sense of worry may be driven in part by the larger financial commitments that younger groups and renters tend to bear.
About the survey
Savanta ComRes interviewed 2,091 British adults online between the 6th and 7th of January 2020, on behalf of R3 Association of Business Recovery Professionals. Data were weighted to be representative of GB adults by age, gender, region and socio-economic grade.