Young people in Britain are likely to get into more debt than previous generations and are also less likely to be able to acquire assets later in life.
This is according to the Debt and the Generations report commissioned by the Consumer Credit Counselling Service (CCCS). The report predicted a bleak financial future for many young people, which could encourage them to look into savings accounts earlier.
At the moment, debt levels tend to peak around the age of 40. However, this appears to be changing with around three quarters of people aged between 18 and 39 now having unsecured debts, compared to 60 per cent of those in the 40 to 54 age group.
Rising house prices, an increased reliance on credit and student loan repayments are all contributing to the mounting debts of this generation.
Wilf Stevenson, CCCS chairman, commented on the report: “The younger generations are facing a worrying future. Higher debts and fewer assets will put many in a precarious financial position, and these trends threaten to impact considerably on quality of life in later years.
"It is also essential they are protected from the aggressive practises of commercial debt management companies who will only add to their debt burden.”
