Buying a new car, purchasing the house of their dreams,…: thanks to credit, we can achieve a range of projects that would otherwise seem impossible without financial assistance. Who nowadays can afford to buy or build a home without external funding? Let’s be honest: very few people. However, as the famous saying goes: “borrowing money also costs money.” A maxim that many young adults, according to statistics on overindebtedness, seem to take too lightly. Let’s take a closer look.
18-34 Year-Olds: A Vulnerable Target
In 2013, the Central Individual Credit Register of the Belgian National Bank (BNB) revealed that one in ten young people aged between 18 and 34 had defaulted on at least one consumer loan or installment loan. This percentage is considerably higher than those aged 35-44 (7.9%), 45-54 (5.8%), 55-64 (3.6%), or over 64 (1.6%).
How can we explain this situation? A combination of several factors contributes to pushing these young adults into a strong>debt crisis situation.
Firstly, there is a greater sensitivity to marketing techniques, which are becoming increasingly subtle and refined. The attitude towards credit is also different, with young adults sometimes considering taking out a loan to be less significant than their elders do. Moreover, there are often questionable and incomplete financial knowledge. Mix this with an unsteady financial situation, and this forms the typical profile of someone potentially vulnerable to overindebtedness.
Additionally, the concept of credit is not always fully understood by everyone. Many people, for example, do not consider buying a discounted smartphone with a subscription to be a type of credit. The same goes for credit cards linked to a retail store.
Poorly informed, unaware, and in a hurry, the 18-34 age group is, therefore, a particularly vulnerable target.
Exiting the Debt Spiral: It is Possible
Nevertheless, it is indeed possible to get your head above water, fortunately! In Wallonia and Brussels, there are several organizations aimed at helping those struggling with debt to regain stability. These services offer free information and advice and even negotiate repayment plans with different creditors.
