Survey reveals nearly half of Millennial gamblers use credit to fund betting
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Searches for gambling applications on the Google Play store and Apple AppStore have increased 18% and 10% respectively over the past 12 months
- 46% have used credit to fund their gambling – more than double that of the average UK resident who gambles
- Over a third (34%) 25–34-year-olds gamblers are taking out new credit to cover essential household expenses
- The data comes as part of a new nationwide report by credit management company Lowell around gambling, credit use and its effect on financial health
As recent ONS data revealed that people aged 25-34-year-olds were 2.2 times as likely to experience financial vulnerability, a new nationwide report from Lowell, has uncovered 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.
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Hide AdThe 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%).
This use of credit comes as searches for gambling apps increased by 18% on the Apple AppStore and 10% on the Google Play store over the past 12 months, according to a new report by Lowell.
46% of 25–34-year-old respondents said they’ve used credit to cover expenses left from gambling
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Hide AdWith 25–34-year-olds 2.2 times as likely to experience financial vulnerability (seeking external forms of finance to fund their gambling), 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.
As evidenced from the study, 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 also said they used their overdraft facilities to fund their gambling activity, which can result in high interest costs, in addition to the money overdrawn.
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Hide AdOn the other hand, 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.
Not only can this have a detrimental effect on the person’s own credit score, their ability to be approved for credit agreements, but it also effects the person you share a joint account with. If the joint credit is taken out with a partner, this could affect their ability to be approved for a mortgage in the future.
Over a third (34%) 25–34-year-olds gamblers are taking out new credit to cover essential household expenses
When taking out credit it is important that people assess their ability to make repayments and keep up with interest costs. Otherwise, this can leave people in a cycle of debt, with unpaid debts leading to consequences such as legal action, damage to financial health, and even ability to claim some benefits.
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Hide AdFor 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%.
39% of UK residents are unaware of the tools and resources available to support with their gambling
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Hide AdFor those experiencing financial issues and debt due to gambling activity, having insight into how to improve your situation is key. Unfortunately, across the UK 39% of people are unaware of the tools and resources needed to support with their gambling use.
Organisations such as GamCare provide their own gambling blocking tools and offer round the clock support and advice. Debt charities such as StepChange are also available to give free advice to those experiencing debt from gambling, and in general.
Commenting on the report 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.
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Hide Ad“Debt can affect anyone, and it is important to reach out for advice and support, as no one should deal with the effects of it alone. We’d like to remind anyone feeling financial pressure to reach out for support, and a list of organisations who can help can be seen at https://www.lowell.co.uk/help-and-support/independent-support/”
We’d like to remind anyone looking for support for gambling debt of our online hub resource: https://www.lowell.co.uk/help-and-support/debt-guidance/gambling-and-debt
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