Younger adults are more likely than other age groups to use credit to pay for essential goods, a survey has suggested.
Research from PricewaterhouseCoopers (PwC) has found that over a quarter (27 per cent) of those aged 25-34 have borrowed to fund such purchases over the past six months, higher than any other age demographic.
However, the study revealed that approximately a third of this group are uncertain about their ability to repay outstanding amounts, which could lead to them needing a debt solution in the future.
“The young are still prepared to borrow despite the tough market conditions – their behaviour has not yet caught up with the reality of the current economic situation,” commented PwC partner and head of consumer finance Richard Thompson.
Recently, Chris Reddish, chair of the Prepaid International Forum, said that prepaid credit cards can be used as a “safe” method of teaching young people about handling money.
By Jamie Price