Parents indebted due to social pressure to spend more on children
The new European Consumer Payment Report from Intrum shows that parents are vulnerable to social pressure, forcing them to spend more money on their children than they can afford. Every third parent in Europe has experienced social pressure during the past year to buy something for their children that they feel they couldn’t afford. Most of them (87 %) have also acted on it and bought something due to that social pressure. This translates into 28 per cent of all parents, or roughly every fourth parent.
Intrum, the market leading credit management services company, has presented a new European Consumer Payment Report with 24 401 European consumers as survey respondents. This year Intrum has focused its analysis on the driving forces behind consumer overspending.
“Our analysis demonstrates how a vulnerable group in society is exposed to a social pressure that can result in unsound, long-term indebtedness. With the many options of payment that exists today and the social pressure people report, we need to do more to create trust and teach every new generation how to consume in a sustainable way,” says Mikael Ericson, CEO and president of Intrum.
The report reveals not only that every third parent feels exposed to social pressure to overspend, but also that young parents (aged 18 to 34) are especially vulnerable, with four out of ten (41 %) reporting that they feel the social pressure to overspend on their children.
Social media plays a key role in creating pressure on modern consumers, and not only parents or young people. Almost four out of ten (39 %) Europeans of all ages agree that social media creates a pressure to consume more than they should.
Related to the question of overspending, there is clear evidence that credit consumption is on a big rise. Intrum sees a dramatic increase in acceptance for buying on credit. Almost every third (31 %) European now think it is OK to buy goods such as TV or computers on credit, jumping up from barely a fifth (19 %) two years ago and 26 per cent last year.
“Being able to take on and give credit is a prerequisite for a growing society. At the same time, our analysis shows how important it is that the system, in which these credits are granted and taken from, works in favor of all parties involved,” concludes Mikael Ericson, CEO and President of Intrum.
About the European Consumer Payment Report 2017
The answers of 24 401 respondents, between the ages of 18-65 in 24 European countries, were collected in total. The survey featured questions concerning household finances and was conducted during September 2017.
For access to the full European Consumer Payment Report 2017, please go to: www.intrum.com/ecpr2017
For further information, please contact:
Mikael Ericson, CEO & President
Tel: +46 8 546 102 02
Sofia Buhlin PR and Media Relations Director
Tel: +46 70 898 24 29
Intrum is the industry-leading provider of Credit Management Services with a presence in 24 markets in Europe. Intrum helps companies prosper by offering solutions designed to improve cash flows and long-term profitability and by caring for their customers. To ensure that individuals and companies get the support they need to become free from debt is one important part of the company’s mission. Intrum has more than 8,000 dedicated and empathetic professionals who serve more than 100,000 companies across Europe. In the 12 months ending September 2017, pro-forma revenues amounted to SEK 12.1 billion. Intrum is headquartered in Stockholm, Sweden and the Intrum share is listed on the Nasdaq Stockholm exchange. For further information, please visit www.intrum.com.