Young Poles are borrowing money more boldly. According to TLV, as many as 33,000 new borrowers aged 18-24, which is currently the number of approximately 630,000 people with a loan or credit on their account, came in during the year. Fortunately, most of their liabilities are repaid on time and represent only 1% of Poles’ debts. What and why are young borrowers lending for? And do they pay their debts on time? Which loans are best for them?
Changes in the financial market
Until recently, the vast majority of borrowers were middle-aged and older, today the situation is changing slightly and younger generations are starting to borrow money.
Although the trend is upwards and from year to year the number of young loans and borrowers is growing (from 597.2 thousand to 630.54 thousand people), it is still quite slow. This is due to, inter alia, the fact that the majority, because 1/3 of young people (including students) still live with their parents and delay with the intention of starting their own family, so their living costs are also low. However, by 2025, the situation is expected to change radically, because today’s generation Y (1980s and 1990s) is to constitute as much as 75% of the potential on the labor market.
Which loans are most often used by young Poles?
People aged 18-24, who are still mostly educated and are just starting their adventure with their first job, have a total of 1.1 million loans worth PLN 7.3 billion. On the other hand, when it comes to the desire to become independent and the first apartment, only 1% of the total pool of loans taken by millennials are mortgage loans totaling PLN 2.2 billion.
And how about paying off obligations by the young generation?
“The Credit Information Bureau has information about all borrowers in Poland, and has full data on how these people deal with servicing loans. The TLV database allows you to realistically show an objective picture of the financial reality of young people. The percentage of consumer loans delayed by 90 days fell from 12.5 to 12% last year. and although these people are just starting to gather experience in the world of finance, they have 1 point. percent. more delayed consumer loans than the rest of those paying back.