Credit crunch really affecting 18-34s

According to a recent report one of the groups that is most suffering as a result of the ongoing global credit crunch is the 18034s age group, which some industry officials have referred to as the Ipod Generation. Over half of this group is thought to have debts of over £10,000, not including mortgages, and nearly a third have no form of savings whatsoever, putting them at increased risk of really feeling the pinch.

One economic researcher stated: ‘We are living in “broke Britain”, not broken Britain, and my generation is suffering. We are potentially more capable of managing our money than previous generations but we have been let down by the financial establishment and government.’

Reports showed that a third of consumers in this age group are confused about products that are on offer, and around half find it difficult to make decisions about finances.

One industry expert said: ‘What is striking in this report is that Ipods possess the highest potential for appreciating the good value of advice and yet are not benefiting from it. Trust and the ability to explain complex concepts are the cornerstones of their service expectation. As the professional body for insurance and financial services practitioners, the CII Group believes that restoring the Ipod generation’s trust and confidence is paramount.’

One former student who graduated as an accountant said: ‘Until a few weeks ago I was still sharing with friends just as I had through my time at university. It was pretty depressing at my age but it was the only option. After training as a chartered accountant I should know how to handle my money but the problems started in my early 20s when banks were keen to give you money. When you leave university the starting wage is never that great so you end up applying for larger overdraft facilities and nearly every month I drain all the funds.’

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