A recent research project has revealed that two-thirds of Generation Y (16 to 29 year olds) expect their parents to help them out by paying their rent, assisting in purchasing a home, paying for their wedding and purchasing a car.
The research uncovered a concerning disconnect between what Gen Y expect from their parents in terms of financial support and what parents are now able and willing to provide.
Unfortunately for Generation Y, it has become evident through another study that 70% of baby-boomers (Gen Ys parents) have suffered financially as a result of the global financial crisis. Baby-boomers themselves are in the midst of amending their own financial problems by refinancing, consolidating debts and using new and innovative methods such as Debt Agreements to assist with their own repayments.
The research shows that 44% of Gen Ys expect their parents to pay for all or at least part of their wedding, 40% expect assistance in purchasing a house and 34% expect financial support for their education.
However with these high expectations it was astounding to see that 65% of Gen Y admitted to having no knowledge of their parents’ financial situation.
With the alarming figures of debt this generation has, it may finally be starting to sink in that they need help with managing their debt and another credit card is not the best solution.
Generation Y has become the latest casualty of the economic crisis. Credit reporting agency Veda Advantage has revealed a large drop in Gen Y applications for personal credit. Veda Advantage’s May figures show a drop in all account credit applications, including hire purchase, credit cards, personal loans and mortgages. Gen Y credit card inquiries fell 26% and mortgage applications declined 5%.
If you are struggling to pay your debts, don’t rely on your parents to assist you, simply call Australian Lending Centre and find a solution that is suited to your needs. Dial 1300 138 188 to speak with one of our experienced consultants today.