Young people ‘consider credit card debt’
Teenagers are looking forward to leaving their debt free days behind and taking on credit card debt, according to a new study.
A group of psychologists, economists and industry experts – called the AXA Financial Task Force – concluded that up to 44 per cent of those aged between 15 and 17 will take on credit card debt as an adult.
Nearly a fifth expect to take out a bank loan at the age of 18, while overdrafts are expected to be a reality for 17 per cent.
However, a study by the group found that the majority of teenagers – 70 per cent – do not have the necessary debt management skills, having failed a weeklong budgeting experiment.
Commenting on the findings, Professor Nick Chater said this inability to budget could be why teenagers are already thinking about taking on credit card debt and other forms of credit.
“These things are seen as the norm so that teenagers think they’re only doing what is typical in expecting to get into debt sooner rather than later,” he added.
Earlier this week, the UK Social Investment Forum noted that 65 per cent of 1,000 young people polled said they plan to make a difference in environmental and social issues through making ethical financial choices.
