72% of families with kids aged 12 to 16 can’t pay their full monthly credit card balance
New Equifax data reveals that families are struggling with credit card debt
According to the latest figures, total credit card debt in April 2018 was £71.1billion, £2,613 per household1. The latest data2 released by credit information provider, Equifax suggests that it is probably families with secondary school kids that face the greatest financial pressure, with nearly three quarters (72%) of families with children aged 12 to 16 years old saying they can’t afford to pay the full balance on their credit card each month. This compares to just over half of the UK population as a whole saying the same.
According to the YouGov figures, 2 out of 10 families with children aged 0 to 16 years old only pay off between 1% and 10% of their full monthly credit card statement balance.
When it comes to missing a repayment on either a credit card or a short-term loan 29% of families with under fours and 12 to 16 year olds have missed repayments. Just under a quarter (24%) of households with kids aged five to 11 years old said the same. Clearly financial pressures are hitting families hard, especially when Equifax research shows that the 52% of the UK population who do not pay off their monthly credit card debts say this is because they cannot afford to.
“It’s clear from our survey that families have additional pressure on their finances, and this can leave them experiencing problems with meeting their credit card debt repayments,” explains Lisa Hardstaff, credit information expert at Equifax. According, to the Money Charity, it costs an average of £23.613 per day for a couple to raise a child from birth to the age of 18, that is over £154,000 per child, so it’s no wonder that families struggle.
“Our research also shows that 8% - 9% of all families we talked to have previously had a payday loan, with 3% - 5% currently relying on payday loans to help them. The worry is that this reliance on short term loans could leave parents in a vulnerable financial position. All it takes is a drop in earnings from redundancy or illness or an unexpected expense to push a family to the edge, especially if they are already struggling to manage their current debts. Taking out credit can help families in everyday life, as long as it is used in the correct way. Learning how to budget finances can help a family understand all the outgoings they have to fund and will give them a level of control that might help reduce the worries.”
1Money Charity https://themoneycharity.org.uk/money-statistics/
2All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2122 adults. Fieldwork was undertaken between 2nd - 3rd January 2018. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
3Money Charity https://themoneycharity.org.uk/money-statistics/
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Equifax Inc. (Equifax) is a global information solutions company that uses unique data, innovative analytics, technology and industry expertise to power organizations and individuals around the world by transforming knowledge into insights that help make more informed business and personal decisions.
Headquartered in Atlanta, Ga., Equifax operates or has investments in 24 countries in North America, Central and South America, Europe and the Asia Pacific region. It is a member of Standard & Poor's (S&P) 500® Index, and its common stock is traded on the New York Stock Exchange (NYSE) under the symbol EFX. Equifax employs 10,400 employees worldwide.
Equifax Limited is one of the Equifax group companies based in the UK.
Equifax Limited is authorised and regulated by the Financial Conduct Authority.