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Young `in more debt than ever`
18 September 2007
Young homeowners in the UK are finding themselves in increasing levels of debt, a new report shows.
The typical sum spent by British homebuyers aged 24 to 35 rose from £65,000 in 1995 to £167,000 in 2005, forcing many to take out mortgages and other loans that they can not afford, the International Longevity Centre found.
However, despite such statistics the study also pointed to an increased difficulty on the part of the young in handling their finances, as the average debt on loans and credit cards was revealed to have doubled over the space of the ten years to £4,600 in 2005.
James Lloyd, co-author of the report, said: "The average 30-year-old now has more total wealth. This is mostly because property wealth and mortgages have doubled in size. But the average mortgage debt of younger house owners has increased more proportionally than their household income."
Figures from Credit Action show total UK personal debt at the end of July this year stood at £1,355 billion. The growth rate increased to 10.1 per cent for the previous 12 months.
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