Debt expert explains changes in financial habits

Meanwhile, those people who are currently under the age of 25 in the UK are “financially less ambitious” and have different reasons for taking out credit, according to Malcolm Hurlston chairman of the Consumer Credit Counselling Service (CCCS).

“People forget nowadays that when the credit card first came it was only one bank putting its toe in the water,” Mr Hurlston told BBC Radio Four’s Today programme.

“It was only consumers – the ’60s generation – who took up the idea of the credit card that made all the other banks follow suit,” he continued.

Mr Hurlston’s comments come soon after a CCCS report which predicted that there will be more people aged over 60 seeking out its debt advice services than consumers aged under 25 before the end of the year.

Earlier this month, the CCCS suggested that many of Britain’s homeowners will be “on the rack” financially throughout 2007.