TransUnion: Under-30s Are Borrowing Smarter, Not More

Under-30s are borrowing differently from their pre-pandemic peers, leaning on credit cards and buy now, pay later (BNPL) rather than overdrafts and payday loans, according to new TransUnion research that compares UK consumers aged 18 to 30 in 2019 and 2026.

Incomes have outpaced prices

The study, "Lending to Key Growth Segments: The Shifting Credit Preferences and Behaviours of Under 30s", was presented at TransUnion's 2026 UK Summit. It found median take-home pay among 18 to 30-year-olds rose from £1,759 a month in Q1 2019 to £2,600 in Q1 2026, an increase of 48%, while household prices (CPIH) rose 31%. The lowest quartile of young earners saw the biggest proportional rise, at 55%.

Housing is the pressure point. Among those paying rent, rent took 52% of income in Q1 2026, up from 40% in Q1 2022. For those with a mortgage, payments took 49% of income, up from 39%. Both have eased slightly since 2025, when mortgage payments took 53% of income and rent 55%. TransUnion also found around one in nine younger consumers (11.6%) have estimated monthly expenditure greater than their income.

Borrowing less, and differently

Average unsecured debt per young borrower was £4,658 in Q1 2026, below the £4,749 recorded in Q1 2019 and equal to about 1.8 months of take-home pay, down from 2.7 months. Average credit scores are higher than in 2019 at every age from 18 to 30.

• BNPL: 18% used it in the six months to January 2026, up from 4% in 2019.
• Credit cards: 35% hold one, up from 32%, and under-30s opened 750,000 new cards in Q1 2026, against 404,000 in Q1 2019.
• High-cost credit: the share with an unarranged overdraft halved from 6% to 3%, and payday-style products fell from 4% to under 1%.
• Mortgages: 6% of under-30s hold one, down from 10% in 2019. Among 30-year-olds the figure is 15%, down from 23%.

The research also points to a weakening jobs market, citing ONS figures that put unemployment among 18 to 24-year-olds at 14.4% in July, up from 11.6% a year earlier.

James O'Donnell, director of research and consulting at TransUnion, said: "Lenders that understand these new habits and build relationships early will be best placed to support younger consumers as they work towards bigger milestones, while building long-term loyal relationships."