Debt acceptance alters 'financial milestones'
Published On 4 May 2007
A greater acceptance of things like mortgage and credit card debt among young people in the UK has changed the financial milestones people strive to reach, according to a new report.While research from Engage Mutual found that young people are delaying moving out of their family home for longer, it also found that they still plan to buy their first home before their grandparents ever did.
According to the findings, the current under-25 generation will move out of the family home three years later than previous generations did. They will also typically get married four and half years later than older people.
However, an acceptance of debt means that 58 per cent of under-25s plan to be on the property ladder before they reach 30.
"Young people today face a very different financial landscape than today's retirees faced forty years ago," explained Karl Elliott, 3GB spokesperson for Engage Mutual.
"With consumer debt at an all-time high, 125 per cent mortgages readily available and credit at our fingertips, today's young generation has become more accustomed to living with debt. As a result, attitudes to financial milestones are changing."
Recent figures from Credit Action show that the typical UK consumer has £4,525 of outstanding credit card debt and unpaid motor and retail finance deals.
