Debt Prevalent Among The 'Friends' Generation

Debt is common amongst most age groups in the UK but it seems that some are more likely to have high debts than others. People aged around 30 carry the highest amount of debt, it has been claimed.

The demographic - dubbed the Friends generation in Alliance & Leicester's research - has unsecured debts of over £5,800, nearly a third higher than the national average. Not only is their debt level the highest, but they are also amongst the most likely to skip when it comes to repayments.

They are the group most likely to only make the minimum credit card repayment, and the least likely to pay in full. They are amongst the highest regular users of overdrafts and the age group most likely to have a personal loan but also amongst the most likely to miss their monthly loan repayments.

A high mortgage exposure has also been reported as prevalent within the age group, with A&L adding that this may be the price of settling down. Further results suggest that two thirds live with their partner and around one in six own their own homes.

The early 30s are a transitional age where careers are taking off and before family responsibilities kick in. Many are buying their first homes at this point, but are also enjoying rapidly rising salaries and are keen to enjoy life to the full.

The picture for the under 30s is dominated by student loans - a hangover of student debt is constraining their appetite for other borrowing and delaying their ability to get on the housing ladder.

"Some, particularly those not trying to get on the housing ladder, may find themselves in financial difficulty as a result of living beyond their means," said the bank's director of retail banking.

The research also revealed that the 18-30 generation is less likely to have consumer debts of any kind than their older counterparts and when they do, they have lower balances than older groups. However, many of them have student loans, which account for nearly half of their overall borrowings, by far the largest type of debt they have. They are also far less likely to get on the housing ladder.

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