Young Gen Z and Millennials are struggling with the problem of “negative wealth” due to the increasing burdens of debt that limits their lives, according to a new analysis from the Equity Foundation.
Thinktank says that negative wealth, as debt exceeds the highest assets, is linked to low wages and worse health in subsequent life, and that the ministers must re -submit Child credit fund To give young people a greater stake in society.
“At the present time, many people around the United Kingdom live without a financial pillow,” said Will Senil, CEO of the Justice Corporation. “This raises them from flexibility in the face of economic shocks and closes them from the well -documented benefits that bring them to the ownership of modest assets, in terms of future profits, employment, physical and mental health, and civil participation.”
Foundation report, No money, more problemsIt was analyzed for national statistics data that showed that a third of children between the ages of 25 and 34 in Great Britain had a negative wealth, reaching 47 % in Wales compared to 18 % in London. The average net net debt reached 8313 pounds in all age groups in 2022, an increase of 5,008 pounds in 2010-an increase of 25 % of real passages after the inflation calculating.
The increase is likely to be due to high rents, student loans and the cost of the living crisis, and emphasizes the gap between tenants and homeowners, whose property usually is more than mortgage debts.
But discrimination is not academic: women who have origins – usually savings – at the age of 23 they earn 11 % of wages at a time when it reaches 33, with a 5 % premium for men. Women who have more than 1,000 pounds in 23 years are more likely to report “excellent” health later in life. Anyone has more financial assets to vote or volunteer.
Although the payment of student loans is exempt to young people who earn less than 27,295 pounds and who started their training courses after 2012, the payment burden makes it difficult to build an egg. “Even student loans’ debts represent an obstacle for people who build financial assets,” Sinil said.
“It is worrying, but not surprising, that the levels of debt are increasing. Politicians need debt processing, and the broader problem that millions do not have any financial assets, as a priority, because this issue destroys our economy, our social breeze and even our belief in our democracy.
“We have had initiatives such as the kids ingredients chart for children in the past; we can consider the policies of building bold assets again, such as the inheritance of citizens who give everyone a cut amount when they reach adulthood, with funding from higher taxes on wealth, to ensure the share of each person in the economy.”
A third of the people who resorted to Stepchang, a charity for debt, was to help last year between the ages of 25 and 34, according to the agent of the client’s chief employee, Richard Lin, who said this is “a great contrast” because people in that age arous constitute only 17 % of the UK resident.
Lynn said: “Younger adults tend to be rented from the private sector, and sometimes with an unsafe income or more, and they tend to experience more transitional life events, such as having children, which increase costs,” Lynn said.
“All these factors can contribute to more income or depending on credit to meet their needs.”
ABTCANGE increasingly helps people who owe money, electricity, water, council tax and other families’ bills. YouGov found the polling for the charity in January that 35 % of children between the ages of 25 and 34 were showing signs of financial difficulty in the previous three months, and 15 % used credit, loans or open withdrawal to stay until the day of payment, compared to 10 % of adults in the UK.
Lynn said: “The increasing costs associated with the family administration make it difficult for people to provide financial flexibility and build them to protect them from future financial shocks – which creates a harmful course of debt for more young people.”
