Debt: Young people head to debt looking for Mr T 'bling'
Young Britons 'blinging' into debt
Tuesday, 29 Apr 2008 00:04
Over 70 per cent of young Brits are secretly competing with their friends in the purchase of luxury goods and getting themselves into debt.
A study of 1,619 Britons - commissioned by mobile banking service Monilink – found many are driving themselves into debt in the effort to keep up appearances with their peers and maintaining a high 'bling factor'.
The research found 22 per cent have so much debt from non-essential spending that repayments are a "significant" strain, while 62 per cent are still paying off credit card debts from last year from luxury goods.
Some 72 per cent of those aged 16 to 34 polled said a good lifestyle in the short term was "considerably" more important than making savings in case of emergency (27 per cent). Yet one in five (20 per cent) admit to being worried about their job security.
Top areas of spending by 16 to 34 year olds to achieve this "good lifestyle" were: holidays (27 per cent), drinking and going out (21 per cent), clothes (19 per cent), gadgets (12 per cent), home improvement (ten per cent), car (eight per cent) and jewellery (three per cent).
John Milliken, managing director of Monilink said: "This study highlights the price younger Britons are willing to pay for peer acceptance. But for many, the price is too high - leading to financial problems."
The attitude to spending appears to be caused by image concerns, the study concluded. Over half (56 per cent) of Britons believe people are judged on appearances and possessions in modern British society, rather than personality.
Sarah Routledge