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It certainly wouldn’t be new information to hear that vast numbers of UK consumers are coping with debt, however, details regarding the ways in which we amass such debts probably will be.

According to a new study conducted by the UK’s second most popular price comparison site, approximately one quarter of all consumers struggling to cope with personal debt have substantially added to their predicament during the last 2 months. Expressed as a percentage, research shows the average debtor increased their credit commitments by around 25%. 

There is no hard fast reason as to why personal debts have increased so dramatically, in such a short space of time, although some experts believe that rising interest rates have caused a percentage of homeowners to secure loans against their property, for a fear of sudden rate withdrawals.

There has also been a sharp rise in the number of newly made credit card applications over the last quarter, which would almost certainly have some form of correlation to the trend. A separate study recently discovered that credit cards are the most popular form of debt accumulation, closely followed by personal loans and then overdrafts.

Increasingly hostile market conditions are forcing droves of FTB’s to settle for less when it comes to buying a new home.

According to recent research, literally thousands of first time buyers are wavering such features as gardens, no of rooms and garages in order to get a foot on the first rung of the property ladder. The research further suggested that almost 30% of FTB’s accept that they will be unable to afford their ideal home and will have no other option than to forfeit their ideals, which represents a shift in trend by almost 20%, in the last 2 decades.

However, experts have suggested that although market conditions are likely to be the primary reason for the change in attitude towards home buying, lifestyles are also thought to be a major dictator. Today’s younger generations are far more interested in living their lives to the full, rather that investing their finances for the future. The housing market is one obvious example of this trend, although the dramatic rise in personal debt over the last 5 years is also believed to have roots in this theory.

In other news, one of the UK’s most respected financial advisory firms have recently warned younger people to give serious thought towards opening a pension. It has recently been discovered that less than 15% of 18-25 year olds consider the opening of a private pension to be a financial priority.

Going on Holiday once a year is a ritual in which many Brits often conform to. However, recent studies have revealed that a startling amount of holidaymakers become indebted due poor financial management surrounding their excursion.

Holidaymakers have been advised to prepare a clear and concise budget before their trip, planning if possible, for any unforeseen eventualities. It is a proven fact that the more prepared a person is before they go abroad, the more likely they are to avoid any financial hardships after they return.

One expert has also suggested that carefully planning when you take your trip can also be a wise move, for example, aiming to avoid national and school holidays will substantially reduce the overall cost of your excursion. Other useful planning tips include a thorough analysis of the cost of living associated to your chosen destination, as certain resorts can drastically drain your financial resources before, during and after your trip.

In addition, one of the UK’s largest lending institutions has reported that personal loans procured specifically for a summer holiday increase by almost 60% during the months of May through to August. Accordingly the average loan amount requested by consumers is £2500, with the average repayment term being 3 years.

If you’re looking to get the maximum possible return from your buy to let investment, maybe you should consider an area close to a place of quality higher education.

According to a recent study, certain parts of Britain, which are home to some of the best and most prestigious universities and specialist colleges, have seen property values in their surrounding areas rise by a staggering 10%, above the UK’s national average for housing market growth.

It has also been reported that the cream of English educational institutions such as Oxford and Cambridge, have witnessed surrounding property values soar by more than 55%. 

One expert suggested that homebuyers are often drawn to such areas due to the abundance of amenities and facilities that such towns harbour, as a means compliment student life. Whilst on the other side of the coin, buy-to-let investors can reap substantial returns from said areas due to the constant demand for property by the student community.

In other news, one of the UK’s leading student bodies has recently challenged Government officials to make housing more affordable for graduates. The news follows on from recent comments made by one of UK’s leading home loan providers, who stated that Graduates are becoming a decreasingly attractive proposition, as house prices continue to rise.

Vanity is one of societies biggest financial drains, suggests a recent report.

Accordingly, British consumers spend an average of £50 billion each year on products and services procured for the sole purpose of “looking good”. However, it has also been discovered that more than 65% of people who spend as a means to quench their desire for a little retail therapy, do so without having the income to back it up.

For the personal loans sector, the above trend accounts for close to 75% of all approved loan plans. It has also been revealed that overspending as a means to look good, surprisingly, is slightly more prevalent in men than it is in women.

The study revealed that the average male would be happy to spend more than £1,000 above their intended budget for a new vehicle, and would also double their budget if required, on an evening out with friends. Women on the other hand are less swayed by the more attractive vehicle, and will fiercely cohere to a pre determined “night out” budget.

In addition, new cars are also reported to be one of the more popular purchases for those people on a quest to look good, closely followed by clothing, personal grooming, holidays and gym memberships.

It is also accepted that younger generations ranging between 18-29 are the most likely to fall victim to this trend, and are also most likely to cripple themselves financially as a result.

Recent Government statistics reveal that 40% of those people who are currently suffering at the hands of personal debt, fall into the 18-29 year old demographic, with an additional 30% admitting the cause of their problems to stem from overspending due to issues of vanity.