Alliance & Leicester Borrowing Monitor: Young most responsible with debt
www.moneynews.co.uk > General finance > Alliance & Leicester Borrowing Monitor: Young most responsible with debt
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Alliance & Leicester Borrowing Monitor: Young most responsible with debt
Fri 21st Apr 2006
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Those under 30 have the lowest level of credit card debt, according to the company, and while they have the highest debt to income ratio, half of their overall debt is in student loans.
Such loans are low cost and therefore incur a lower level of financial outlay in servicing, meaning that those in their 20s spend an equivalent amount on debt-based interest as those in their 30s and 40s.
"Our research confounds the stereotype that young people are…irresponsible with their finances," said Chris Rhodes, managing director of Alliance & Leicester Retail Banking.
"Student loans are their largest commitment and whilst the interest on these is low, it still seems to constrain their appetite for other debt."
The Alliance & Leicester Borrowing Monitor also suggested that base interest rates were currently at a healthy level.
It said that rates would have to reach 8.5 per cent before the UK saw a recurrence of the so-called 'debt crunch' of 1990, when thousands of people lost their homes.
Related News : General finance |
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Related News : Alliance & Leicester |
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