Many young people 'fear debt'

WEDNESDAY, OCTOBER 04, 2006

While the older generation feel secure, many young people in Britain are worried about their financial future.

The majority of those aged 18 to 23 fear for their financially future, while the older generation is more confident, according to research from Scottish Widows.

Some 61 per cent of those aged 55 and over feel confident about their finances, while 73 per cent of young people are fearful that they may end up in debt or bankrupt.

All in all 59 per cent of those in the UK are worried about their finances, the survey found.

George Andrew, consumer affairs spokesperson at Scottish Widows, said: "We all need to be thinking about our financial future no matter what age we are and it is interesting to see that 'the older the wiser' really does seem to apply when it comes to finances.

"Many young people are focused on paying off student debt and getting on the housing ladder and longer term financial planning takes second place."

The survey also found that 66 per cent of young people believe that their parents are much more financially savvy than they are and know how to stay out of debt.

However when in their 40s, only 33 per cent of people believe that their parents are more financially knowledgeable.

In September total personal debt in the UK exceeded £1.25 trillion, according to debt charity Credit Action.