Financial risks being taken by young people

02/09/2011

Young people are taking more financial risk and taking on more debt according to a new study.

Axa’s Big Money Index revealed during the second quarter of the year, the number of young professionals reducing their overdrafts fell from ten per cent to six per cent.

Nick Turner, AXA UK’s director of customer partnerships, commented to Cleardebt: “Caution must be urged against borrowing to make life more comfortable.”

Individuals aged 50 were more likely to increase their borrowing and less likely to reduce it in efforts to become debt free than they were in the first three months of 2011.

Furthermore, those on lower incomes were seen to be increasing their debt by the greatest amount, will 11 per cent borrowing more than in the first three months of 2011, compared to nine per cent across the under-50 group as a whole.

These figures highlight concerns about unmanageable debt rising, as individuals are able to pay back less and less and interest rates begin to increase.

Tags; Current UK Economy, Income Worries and Debt, Young Family Finances, Recent Graduate Debt,

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