Money worries are creating a time bomb for young people’s mental health, with almost 40% of 18-34 year olds saying their mental health has significantly deteriorated as a direct result of the cost of living crisis.
According to lender CreditSpring, a third of young people say they have more debt now than they did 12 months ago, and a further third say their financial worries are causing them sleepless nights. ing.
The research comes as average rents in England rose by 9% in the year to February, the highest annual increase since the Office for National Statistics began keeping records in 2015. It became.
Rapid increases in rental values will have a greater disproportionate impact on young people, who are less likely to be able to move onto the housing ladder and more likely to live in rented accommodation.
In fact, further new research from asset management firm St. James’s Place shows that 22% of renters say their total household wealth has declined significantly over the past 10 years, indicating they are financially resilient. Less than half of people think that there is. Almost two-thirds of the 6,000 people surveyed said their mental health was suffering as a result.
Neil Kadagatur, Chief Executive Officer and Co-Founder of CreditSpring, said: “Money anxiety and mental health are inherently linked. The daily struggle to afford basic necessities, emptying savings pots and mounting debt are impacting on the UK’s mental health, and the amount is on the rise, and more and more people are finding themselves in this heartbreaking situation.
“Older people, who have built up a more reliable savings cushion and are more likely to have higher household incomes, may not face the same deluge of money worries that younger generations struggle to overcome. is high.”
Michaela, a 29-year-old Maltese actress who currently rents in London, says she has had to drastically change her lifestyle to cope with the “ridiculous rent increases”. She is currently juggling multiple jobs alongside her auditions, including working at a printing company, taking on various promotional jobs, and working as a pet and babysitter, she said. Although she’s doing well with it, it has had an undeniable impact on her mental health, and she says, “When she decides to treat herself, she constantly struggles with money worries and feelings of guilt.” I feel it,” she says.
Additionally, the CreditSpring survey found that one-fifth of young people rely on credit to pay their bills, compared to 3 percent of those over 55.
