Younger Generation Hit With Loan Debts
Since the beginning of the credit crunch and the subsequent slow down in the UK economy, there has been a lot of concern over the plight and financial problems being faced by many home owners, many of whom have built up large debts over the years through their mortgage, other personal loans and credit cards.
But according to a new report, these individuals are not the only ones who are suffering in the current economic climate. It seems that some of the worst hit people in the UK are in the age range of 18 to 34, regardless of whether or not they own their own home.
According to the report, this younger age group are suffering particularly difficult financial problems and have been described by financial experts as “the youth of broke Britain”. The survey has revealed that more than half the people in this age range already have personal loan and credit card debts of around £10,000 and somewhere in the region of 20 per cent have loans totalling more than this figure.
The average level of loan debt for this age group is around £6,000 and about one third of individuals don’t have any form of savings put aside for their future financial needs.
One economist said “We are living in “broke Britain”, not broken Britain and my generation is suffering. We are potentially more capable of managing our money than previous generations but we have been let down by the financial establishment and government.”
One reason for this level of debt amongst this younger age group could be due to the fact that more people are now going to university and leaving the education system with large debts on student loans. But whatever excuses people use to justify this amount of borrowing, the fact remains that we are dealing with the product of a “buy now, pay later” culture which has grown up in the UK over the past few years and if this age group has this amount of debt at this stage in their lives, it doesn’t bode well for their finances in the future.
