The challenge for young employees who are unclear about their purchase power
Lots of young professionals in the UK encounter financial management issues. 29% of employees in the UK run out of money before payday. And, 2/3 of loan applications are rejected or received higher rates than advertised rates.
From our research, we found the most common financial pressures for young professionals are unclear affordability, budget management, overspending, unbuilt Credit score, credit product exclusion and preparation for applying for credit products.
To solve those problems, they need to understand how much they can spend and how to prepare for future loans.
In-depth research concludes that the root cause of being not clear about people's own purchase power are low financial literacy, thin credit profiles and invisible spending. In the long term, unclear purchase power will affect loan eligibility.