Mar 20, 2025

Youth Tax is driving a rise in suicide, experts say Young people are experiencing high levels of mental health problems - including depression and anxiety Get the latest Bristol Live breaking news on WhatsApp Our community members are treated to special offers, promotions and adverts from us and our partners. You can check out at any time. More info One in four young adults are in debt after resorting to credit and one in 10 have experienced suicidal thoughts due to worrying about repayments, according to a new report. New figures from the 2025 Money Talks report, launched by MoneySuperMarket and CALM, show that seven in 10 of 18-24 year olds have used credit such as credit cards, Buy Now Pay Later schemes, overdrafts or short-term loans to smooth out gaps in their income, with 44% saying they owe £1,000 or more. Half have been unable to pay their bills on time in the last 12 months and 27% had failed to do so at least four times. Nearly nine out of 10 young people are worried about not having enough money, while half already fear they won’t be able to achieve what they want in life. Half of young people said they felt they had let others down by not being able to cope financially. Of those in debt, one in three have felt isolated as a result of worry about repayments, with one in five saying they have felt “severe” anxiety. MoneySuperMarket and CALM are urging young people and their trusted adults to use the resources available to break the taboo of talking about money worries. The research comes as figures show the leading cause of death in 15-24 year olds is now suicide. While the average representative credit card interest rate in the UK is around 23.9%, the rates can often exceed 30% for youngsters with a limited credit history.This gives rise to a cycle of expensive credit spending and debt dubbed the Youth Tax - which erodes young people’s credit scores and ability to access more competitive interest rates in the future. Kara Gammell, personal finance expert from MoneySuperMarket said: “Young adults today find themselves in an incredibly challenging financial situation. Social media is creating a sense of financial pressure, both to keep up with aspirational lifestyles today and to achieve a certain level of monetary success in the future. Meanwhile, young people are using credit to afford day to day costs with many telling us they feel ill equipped to manage their use of credit and their credit score. “‘This means it is now more important than ever for young people and the trusted adults in their lives to talk about money, and sign post trustworthy information about credit scores to help build the foundations for their financial future. “These conversations are vital - both in helping young people to avoid a continuous cycle of debt, and in breaking down the stigma around money worries which can stop people asking for help when they need it.” Simon Gunning, CEO of Campaign Against Living Miserably (CALM) said: “We know there’s a clear link between debt, poor mental health and suicide, and it’s alarming to see that one in 10 young people in debt have experienced suicidal thoughts in the last year as a result of the money they owe. "We’ve heard from young people that they want to learn more about financial management and the options available to them and so we’re working with MoneySuperMarket to improve financial literacy among young people, to help them take control of their financial futures and avoid costly financial decisions that can take a toll on their mental wellbeing.” MoneySuperMarket's Money Talks provides resources and tips from experts for young people and their trusted adults. CALM’s Money Talks hub offers support for mental strain that money worries can cause. Story Saved You can find this story in   My Bookmarks. Or by navigating to the user icon in the top right. Follow BristolLive Most Recent Most Recent