Recently released statistics from one of the UK’s leading consumer trends institutes reveals that home loan repayments have increased by almost 100% in the last decade, for borrowers who fall into the 21 – 34 year old demographic.
Accordingly, in 1997, the average home loan commitment for consumers within this specific demographic stood at around £60,000. However, industry data suggests that this figure has skyrocketed in the last 10 years, and the average borrower can now expect to juggle a mortgage commitment of around £115,000.
In addition to these gargantuan mortgage related debts, today’s younger generations have also become extremely credit hungry. It has been discovered that the average 25 – 35 year old can also expect to balance credit card, overdraft and personal loan commitments worth around £7,000. Again, this figure has also more than doubled in the last decade.
On the results, one expert commented that changing economic conditions coupled with an increased propensity by consumers to acquire credit (especially those in the younger demographics) have caused national debt levels to increase at a spectacular rate.
Unfortunately, however, high-end debt is almost inevitable for first time buyers, which is perhaps one of the reasons why the rental market has also experienced strong growth over the last year.
