One in four people under the age of 25 years-old resort to credit cards to make ends meet, according to new research by comparison site TotallyMoney.com.
The survey found that 25% of those under 25 years-old are borrowing on their credit cards to pay towards essential household bills such as their utility bills and 16 per cent resort to a credit card to pay their rent. More than half (52 per cent) admit to using plastic to pay for their groceries.
Despite their dependence on credit, 60 per cent don’t have enough money available to pay off their credit card bill each month. More alarmingly as many as 25 per cent admit to missing the required monthly minimum payments in the past year.
Skipping payments incurs expensive penalty fees and leaves a mark on your credit file. This can make you less attractive to lenders considering an application for a mortgage, loan or credit card in the future.
As a result, one in five (17 per cent) have been rejected when applying to borrow in the past 12 months, outstripping the rejection figures for all other age groups.