Nearly two-fifths of 35- to 44-year-olds have turned to loans to make ends meet in the cost-of-living crisis, more than double the proportion of people 55 and older, according to one of the largest reports. complete of this type.
The Resolution Foundation study released Thursday also found that while nearly every demographic group had saved and cut spending due to high inflation, a quarter of those under 35 had turned to “mom and pop’s bank” for aid.
It found that 37 percent of people ages 35 to 44 had relied on formal loans such as credit cards, overdrafts, or loans in March, compared with 16 percent of those 55 and older and 26 percent of the general population.
In contrast, about a quarter of 25-34 year olds have been forced to seek financial help from family or friends in the past year, compared with 13 percent in the 45-54 age group and only 2 percent among the elderly. 65 and over
The study also found that nearly a fifth of low-income families reported being late on at least one bill in the past three months. One in seven ate less or skipped meals on seven days in the past month, twice the rate for the population as a whole. About 500,000 people, equivalent to 6 percent of low-income households, reported having used a food or hot water bank in the past four weeks.
About 40 percent of 25- to 34-year-olds said their mental health had been negatively affected by the rising cost of living, compared with 30 percent across all age groups.
Molly Broome, an economist at the Resolution Foundation and author of the report, said that “almost everyone has been affected by the current cost-of-living crisis, but different people have used different coping mechanisms to get by.”
Official data released last week showed UK inflation unexpectedly held in double digits in March at 10.1 percent, the highest of any G7 country and close to its 41-year high in October 11, 1 percent.
RF’s report was endorsed by the Health Foundation and used data from a YouGov survey of 10,122 adults between November and March.
Dave Finch, deputy director of the Health Foundation, said state aid in the form of cost-of-living payments was welcome, but called for a broader strategy to address financial difficulties and “prevent a rise in evictions and unaffordable debt.”
