Finance firm Creditfix is blaming “soaring rents” for growing debt amongst tenants.
It claims there’s been a significant rise in the number of renters under the age of 45 seeking support for unmanageable levels of debt.
Individuals under the age of 45 now account for 73 per cent of all Creditfix customers who are renting, up from two thirds 67 per cent in 2021.
The figures are compiled using data from over 185,000 people across the UK who have received help with their finances through an IVA with Creditfix; this data shows that the average level of debt for renters is £17,347, up from £14,549 in 2021.
Whilst this is below the national average of unsecured debt at £18,040, it still represents a 19 per cent increase.
Stephanie Chapman, chief operating officer at Creditfix, says: “The rental market, especially in larger towns and cities, is driving up prices and pushing younger people into debt. The demand for rental properties is high, leading to increased competition and rising rental prices.
“Many people are struggling to afford rent or find appropriate housing in today's market which can quickly put strain on budgets. In such cases, seeking debt help becomes essential for overcoming financial burdens.
“There are formal and informal solutions available to renters to help them manage what they owe. Debt advisors will be able to offer guidance on the best solution.”
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