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Young Britons 'Warned On Dangers Of Overspending'

Nov 28, 2007
Young people could be finding themselves coming under increased financial pressure, new research reveals.

A study conducted by youth marketing agency Face found that about half of Britons between the ages of 16 and 25 have run up debts equating to more than 50 per cent of their annual earnings. The findings also indicated that people within this age group are now an average of 5,500 pounds in red, in comparison to the 3,700 pounds noted in the same research conducted last year, reports the Press Association. Overall, more than two-thirds of those questioned made less than 10,000 pounds per year. An estimated 15 per cent of respondents make somewhere between 10,000 pounds and 15,000 pounds, while a similar proportion of young people (16 per cent) have annual earnings of more than 15,000 pounds. It was also suggested that such consumers who are not students are particularly struggling to manage their finances, whether this ranges from paying utility bills to meeting demands for repayments on personal loans and other types of borrowing.

According to Face, an increasing number of 16 to 25-year-olds, especially those who are not in education, are embracing a "buy now, pay later" lifestyle. However, with interest rates being increasingly hiked up by credit providers and the availability of cheap loans and other forms of competitive borrowing diminishing, it was suggested that such spending could see people come under financial difficulties in later life.

Further research from the marketing company also revealed that the vast majority (97 per cent) of young people have a bank account. Meanwhile, 12 per cent have taken out a loan, while more than half of these consumers are in possession of a credit card.

In addition, the report indicated that social networking and searching for information via the internet are becoming an increasingly prominent feature of young Britons' lives. With Face reporting that more youngsters are "turning their backs on television and instead taking their laptop to internet cafes" to share and exchange recommendations, it could be possible that such people are seeking advice when looking to take out an online loan.

However, those consumers who find that they are developing problems in managing their money, whatever their age, may wish to apply for a debt consolidation loan. In taking out such a form of credit, borrowers could well find that they have more disposable money left in their accounts at the end of each month as a consolidation loan could see them pay off monies owed to numerous creditors and companies quickly and effectively, thus leaving them with only one low-rate regular payment to make.

Speaking earlier this year, Debtmatters spokesperson Michael Shirley told the Sun that despite increasing debt problems, consumers are often reluctant to admit that they are experiencing difficulties. However, he warned that not owning up to the fact that they are in trouble will only further the anxiety that they feel and cause more hardship in making payments on loans and other types of borrowing. As a result, Mr Shirley advised people to seek help with their money management, with applying for a debt consolidation loan one possible way of getting spending back under control.
About the Author
Steve Smith writes for 1 Stop Finance Shop. A one stop shop for all your bad credit loans, debt consolidation loans and personal loans.Visit Today
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