The Cost of Love

Younger consumers are increasingly using buy now, pay later (BNPL) solutions to cover the cost of their social and romantic lives, according to Intrum's latest research.

In total, 40% of UK millennials surveyed for the European Consumer Payment Report said they are using BNPL in this way, compared with 6% of the Boomer generation. Also, almost half (47%) of the younger group said that the rising cost of gifts and meals out is having a negative impact on their romantic life. Only 14% of baby boomers agreed this is a problem for them.

"The temptation to overspend can be intense around Valentine's Day, with younger consumers in particular feeling social pressure to buy extravagant gifts and expensive meals out, said Intrum's UK Managing Director Eddie Nott. "With the cost of living crisis in full flow, many will not be able to afford to do that this year."

In fact, a fifth (20%) of UK consumers surveyed said buying presents or treats for their partner or spouse is the most common reason they get into debt. This is a much bigger concern for younger consumers, with a third (34%) of millennials struggling.

More than half (55%) of the millennials surveyed said social media creates a pressure to spend more than they should, something only 20% of their older peers feel.?