Early 30s in most debt
April 20, 2007 by admin
Filed under News, News-Banking
People in their early 30s, known as the Friends generation, borrow more money than any other age group.
New research shows that they have the highest borrowing, including mortgages, and are more likely than other generations to miss repayments.
A study, carried out by Alliance and Leicester, shows that the Friends generation, named after the popular US sitcom, have an average unsecured debt of around £5,863.
That stands at 29 per cent above the national average and the fact that they often miss payments means that the situation is getting worse.
Alliance and Leicester does point out that the age of the Friends generation does not help their cause as many are now seriously making moves to settle down.
This means many are buying their first home, with 63 per cent currently owning a property.
“The early 30s are a transitional age where careers are taking off and before family responsibilities kick in,” explained Chris Rhodes from the bank.
“Many are buying their first homes at this point, but are also enjoying rapidly rising salaries and are keen to enjoy life to the full.”
Things look much better for the so-called Club 18-30s generation, with fewer people in this age range having consumer debt.
It is not all rosy however, with student loans having a major affect on this generation’s finances.
“The picture for the under-30s is dominated by student loans,” continued Mr Rhodes. “A hangover of student debt is constraining their appetite for other borrowing and delaying their ability to get on the housing ladder.”
