A number of different economic factors have ensured that young consumers in the UK are facing the deepest debt management problems, according to reports.
Economics editor at the Independent Sean O’Grady insists that “debt is concentrated among the young” and he suggests that borrowing money is an increasingly common part of being in your 20s in the UK.
First-time property buyers tend to borrow far more than was the case a few decades ago and student loans often leave young British consumers with thousands of pounds worth of debt before they enter the workplace, Mr O’Grady points out.
He said: “It’s long been normal for people in their 20s, taking their first step on the housing ladder and starting a family, to borrow.”
“In 1980 it would take one and three quarters of a year’s salary to see you in your starter home, now a borrower will need to persuade the bank to lend them well over three times their annual income.”
Research carried out by Unbiased.co.uk recently showed that thousands of young British consumers cannot say to the nearest £500 how much debt they have outstanding.