A new nationwide report from Lowell, has revealed that the 25–34-year-old age bracket are 2.8 times more likely to see gambling as a quick fix to money problems than the average UK resident. This follows recent ONS data showing that people aged 25-34-year-olds were 2.2 times as likely to experience financial vulnerability,
The report surveyed 1000 people in the UK around gambling and how it impacts their overall credit use. It revealed that 46% of respondents aged between 25 and 34 use credit to cover gambling costs, which is 2.2 times more than the average age percentage (22%).
The new data from Lowell found that this age group was also significantly more likely to use credit to cover gambling expenses. 46% of respondents from the 25-34-year-old age bracket said they used credit to cover expenses left from gambling.
When it comes to the use of credit products to cover costs, although respondents had a greater likelihood of using their own credit, many also took actions which could have a negative effect on loved ones and their financial health. 20% said they used their own credit, with 16% withdrawing cash from their credit card – an action that can have a negative effect on credit score and leave users with additional charges. 14% of respondents from this age group said they used their overdraft facilities to fund their gambling activity, which can result in high interest costs, in addition to the money overdrawn.
Many 25-34 year old respondents also carried out actions which could negatively affect the financial health of friends and families, with an alarming 18% borrowing funds from their friends and family without their awareness, and 17% using a joint credit card to cover the costs left from gambling expenses.
For many respondents of this age group their gambling activity has resulted in them having to take out further credit to cover household expenses, which further damaged aspects of their financial health. For those surveyed, credit repayments from gambling activity had caused 18% of respondents have had to take out new credit just to cover household expenses, with 16% taking out further joint credit to cover their essential outgoings, and 13% missing paying priority bills.
With acts like credit card withdrawals and missed repayments having a negative effect on credit score, 13% reported damage to their credit rating due to their gambling – 3.3 times that of the national average of 4%.
Meanwhile, 39% of UK residents are unaware of the tools and resources available to support with their gambling.
John Pears, UK CEO of Lowell UK said:
“Our latest research has shown a worrying trend amongst younger people utilising credit in order to gamble, or fill the financial hole left by gambling. Whether it’s gambling for a perceived ‘quick win’ to help to pay the bills or taking out new credit facilities to help with them, this can lead to vulnerabilities for people’s financial health and put them and their families at risk of further debt.