New research suggests that rising levels of debt will change people’s spending habits, forcing many to lease goods rather than purchase them.
The Future Laboratory states that the trend originated in the US but will soon catch on in UK shores, with a boom in leasing expected this year.
Gwyneth Holland, trend and research editor at the Future Laboratory, told the Western Mail: “Young people are being weighed down by debt.
“Because they can’t afford to buy their own property, they’re leasing for longer instead.”
Robin Croft, a principal lecturer at the University of Glamorgan’s business school added that the trend for leasing started in the automotive industry.
However, it is now widespread in other areas such as furniture and other goods, suggesting consumer lifestyle are forcing a shift in spending habits.
In related news, proper financial decision making has been described as necessary to keep people on low incomes out of debt.
The Citizens Advice warned that a combination of poor decision making combined with low income can lead to debt problems.