Partner Article

Young people still borrowing heavily

A new survey by PricewaterhouseCoopers (PwC) has revealed that many young people have not yet changed their behaviour and attitudes to credit, despite the economic downturn.

Struggling with debt, young people between 25 and 34 are more likely than any other age group to have used credit to pay for essential items, and more young people than any other age group have applied for credit.

Richard Thompson, partner and head of consumer finance at PricewaterhouseCoopers, said: “Not only are some young people using credit to pay for the essentials, but they are still applying for credit to fund their spending. Such behavior would appear to indicate that recent economic events have not yet influenced some people’s behavior.

“The young are still prepared to borrow despite the tough market conditions: their behavior has not yet caught up with the reality of the current economic situation.

“However this is not only an issue for the young; one of the most worrying conclusions from our survey is that concerning people’s ability to afford their current repayments on borrowings.

“Our survey shows that around 30% of borrowers are uncertain about their ability to make payments on their outstanding borrowings. This is bad news for both consumers and lenders.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .