Young adults 'most likely' to pay with credit
Young adults 'most likely' to pay with credit
- Wednesday, 22 April 2009Many young adults in Britain are paying for essentials on credit, despite the fact that some borrowers admit they are not certain about how they are going to manage debts in the long-term, according to a PricewaterhouseCoopers (PwC) executive.
Richard Thompson, partner and head of consumer finance at the firm, said a recent survey showed 30 per cent of borrowers were not sure about how they were going to be able to repay their debts.
Furthermore, the PwC Credit Conference survey, which was conducted in association with YouGov, indicated that 27 per cent of people between the ages of 25 and 34 had used credit to pay for essential household items, including food.
"Not only are some young people using credit to pay for the essentials, but they are still applying for credit to fund their spending," Mr Thomson stated.
He added: "This is bad news for both consumers and lenders."
Earlier this month, accountancy firm KPMG predicted that the number of people to be declared insolvent in 2009 could increase by 40 per cent as many struggle to manage debts during the credit crunch.

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