Young people ‘moving away from borrowing’

Debt consolidation appears to be an approach increasingly adopted by young people as they adjust to an age of austerity.

This is the conclusion of a study by the Principality Building Society, which found 63 per cent of 16 to 24-year-olds believe now is a good time to save money, rather than adopting the once-popular attitude of buy now, pay later.

Head of savings at the building society Kate Murray said:  "With credit readily available before the credit crunch, we saw a move towards getting what you want immediately and away from saving for it."

She continued by stating this build-up of debt involved "failing to plan for the future" and was "unsustainable".

A recent MoneySupermarket survey also showed a growing tendency to save among young people, with 21 per cent of 18 to 34-year-olds saving for the first time in the past year.

However, 19 per cent of this age group used more credit than last year, compared with 13 per cent who used less.

By Joe White