The reliance on credit during the cost-of-living crisis for millions of people across the UK and Europe has been laid bare in a new report, with nearly a quarter of adults (23%) admitting their debt levels have never been so high.
The report from CRIF, European provider of digital transformation services, shows that one in four (23%) Europeans state the cost-of-living crisis has increased their debt levels to the highest they’ve ever been. In the UK specifically, similar proportions of young (18-34) and middle-aged adults (35-54) said their level of personal debt was higher than ever (26% and 23% respectively). Overall, a fifth (20%) of young and middle-aged adults in the UK are now borrowing more money, saying it has become a normal part of helping them get by.
However, particularly among young adults, Europe has seen significant adoption of digital banking services to better manage their finances. More than half (56%) of young adults in Europe said they would now manage their finances online or through an app more than they previously did.
Crucially, more than four in ten (45%) young Brits said they would be happy to share more of their financial data – for example via open banking – if it helped them keep track of spending, save more easily and help with credit or loans applications.
Sara Costantini, Regional Director for the UK & Ireland at CRIF said: “With many facing higher levels of debt than they’ve ever experienced before, Europeans are embracing innovations in digital banking to better understand and manage their finances, with younger adults in the UK among those leading the way.”
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