Indebted generation ‘needs to learn thrift’

A generation of Britons needs to learn the art of “thrift” and leave behind the “buy now, pay later” culture, it has been suggested.

Justin Modray of financial website candidmoney.com said both consumers and the government have been running up “unsustainable debt” over the past 15 years.

He added this “artificially” bolstered the economy for a time, but noted the country is now suffering the consequences.

Such comments come in the wake of a survey by Bright Grey, which revealed the average Briton believes they need £ 1,706 to enjoy a comfortable way of life, 27 per cent above the average salary.

Mr Modray observed: “Too many people have got themselves into too much debt in pursuit of a lifestyle they can’t necessarily afford.”

And while the majority of consumers will just about manage to cope, a base rate rise may be the “straw that breaks the camel’s back” for some mortgage payers, the expert predicted.

Such situations could potentially lead to more homeowners facing repossession or needing an IVA to get their debts under control and avoid bankruptcy.

One good sign is that the level of credit card debt is falling, Mr Modray observed, which he took as a signal some are already learning the lessons.

“But debt will remain a problem for many years yet and I fear a whole generation will need to learn the concept of thrift,” he added, something those seeking advice on becoming debt free may find out ways to accomplish.

The research by Bright Grey published last week indicated 82 per cent of Britons have not changed their spending habits in the past year, while seven million are living beyond their means.

By Joe White