18 – 24 year olds account for 1/3 of all credit card cash withdrawals
In our current economic climate, finance is always at the forefront of our minds, especially for the younger generations. Not only do they have student loan repayments and debts to deal with, but they also have property ladder worries, and/or important career decisions to make.
Due to all these financial strains and thoughts, it is unsurprising that the 18-24 year old age group of the population are the most likely to make cash withdrawals on their credit cards.
When you place those statistics against all the other age brackets incorporated in the latest financial study, it becomes apparent that approximately 1/3 of all these types of transactions are made by the younger generation. Another telling sign is that the percentage of young people whom are withdrawing cash with credit cards because they believe it’s cheaper is double the other age ranges. Furthermore, this consistency is maintained when you look at how likely the 18-24 age group is to make a credit card withdrawal rather than a credit card purchase – it’s double yet again.
It is recent graduates and current students that feel most under financial difficulty. Speculation by the public and media has been made as to why the younger section of the public are feeling the need to make credit card cash withdrawals. Blame is being laid at the feet of the rising cost of tuition and living fees at university.
If you take a look at the latest news articles to come from the Daily Mail, The Guardian, and The BBC, it is quite apparent that the cost of living in halls has caused many students, roughly 237,000, to reconsider moving out and opting to stay at home with their parents. When you compare the numbers with students in 2003, only 20% lived at home, now it’s over 25% – a significant increase. The National Union of Students (NUS), has commented that they believe the Coalition Government’s decision to increase tuition fees from £3,000 to £9,000 per year is the main culprit behind these changes.
Therefore, if the cost of studying and living is causing you to make regular credit card cash withdrawals, it’s best to seek advice and help from professional sources. One prime example is using the credit card comparison tool found at Totally Money. Their clever systems allows you to shop around to help you find the best deals for your current situation. If you are having to depend on credit card cash withdrawals and have no other options, Totally Money’s CEO, Will Becker suggests the Halifax Clarify Card to be the preferred choice.