While I recognise it was a) - quite a while ago and b) - the privileges I carry, looking back on being a young adult I didn't worry much about money. Through student loans, part-time work in restaurants and a leisure centre and then a full-time job, it was alright - usually enough to pay the rent, bills and go for a pint. Though it was a stretch at times, in and out of my overdraft, I can honestly say it never kept me awake at night.
The current climate is exceptionally hard for young adults across Scotland. The economic price of the pandemic has had a high cost for this demographic, with hundreds of thousands working in retail, hospitality, leisure and entertainment furloughed or made redundant.
Today, those aged 25 to 34 face the biggest risk of losing their jobs. Job losses, income reduction and feeling like all your future plans are slipping away is not how the 2020s were supposed to pan out for this generation.
In the three months to November, people in that age group had a redundancy rate of 16.2 per 1,000, a fivefold increase on the same period a year earlier. Unemployment is predicted to reach 2.6 million in the middle of 2021, according to the Office for Budget Responsibility.
Being out of work during a global pandemic is incredibly difficult. There are fewer jobs to apply for and fierce competition for the ones that exist. The number of vacancies in November 2020 was estimated to be around 44% less than the same period in 2019.
The relentless application process, rejections and need to keep going have a huge impact on confidence and mental health. Coupled with the crippling reality of simply not having enough money for bills and every day essentials, pressure is mounting daily for so many young adults.
Against this backdrop, it's not surprising to learn that anxiety around money and debt is having a direct negative impact on young adults. A poll of 1,016 Scots found that money concerns impacted the sleep of 55 per cent of those aged between 16 and 34 who had debts. Furthermore, almost two-thirds (60%) of young adults in debt felt their finances have negatively affected their mental health.
Not sleeping, feelings of desperation and isolation sadly all too often go hand in hand with problem debt. It's awful. And many young adults are carrying this burden while trying to shield their families, their children from the reality of difficulties they are facing. Unpaid bills, calls from creditors, red letters demanding payments.
Scott 26, from Edinburgh describes his situation: "I was in a pile of debt. I couldn't really see a way out. It was a nightmare. It was keeping me up at night. It was stressing me out."
Not seeing a way out is a common feeling for people in debt. Many people put off seeking debt help, with 30% of clients from national debt charity Christians Against Poverty (CAP) Scotland waiting three years and longer before seeking help.
The Savanta ComRes research commissioned by CAP Scotland also found that the majority of young adults (54 per cent) did not know where to seek free debt help - understandable when you have never had to think about unemployment, unpaid bills and unexpected changes to your everyday life.
Free profession debt help is available across Scotland from organisations like Citizens Advice, Stepchange and CAP. All of these services have adapted during the pandemic with telephone and web-based options, while keeping a person-centred approach. At CAP, it's the combination of specialist debt help alongside community based practical support offers a lifeline to anyone experiencing problem debt.
Yet, barriers can prevent young adults from seeking help. The stress and worry of debt can be overwhelming and it can appear easier to ignore it rather than confront it. Shame, embarrassment and guilt can keep people trapped in silence and isolation. Shame at getting into debt, embarrassment at what people will think, guilt at past decisions that may have contributed to debt. This is a particular issue for young adults who often feel compelled to look like they have all their stuff together - of being 'alright'.
When I think back to my twenty something self, would I have asked for help? Would I have raised my hand and said I need help with my finances? 'I don't know' is the honest answer. Scott did raise his hand and seek help from CAP "The whole thing about debt management, it's scary – but CAP makes it more understandable and easier to manage. They've made me feel less stressed out about it."
For those of us working across the debt and advice sector, we need to work harder to help tackle the stigma and shame that still exists around debt, especially for our young adults. We need a clear and unified message that says we know debt can happen to any of us. There is no shame in that, and help is available.
For all of us, opening up conversations around money, debt and our personal finances can go a long way to change the narrative here. Transparency about the struggles that so many of us have and willingness to ask 'do you need some help with that?' All of this can help those struggling to speak out and reach for support.
Emma Jackson is the Scotland Director for Christians Against Poverty (CAP) overseeing the work in Scotland of this UK-wide debt and anti-poverty charity, which helps around 22,000 people each year. Emma has worked for CAP for over 7 years leading teams, projects and service development, and is deeply passionate about tackling the injustices of poverty and ensuring that everyone has the opportunity to thrive. She is a contributor for BBC Radio Scotland's Thought for the Day and a board member for The Poverty Alliance.
