Bad Credit Habits 'Learned From Elders' |
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| By Mick Eccles |
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| keywords: bad debt habits loans secured credit score history financial money loan trouble bankruptcy finance | ||
Lax attitude towards spending reflection of parent's habits Following a report into the borrowing beliefs of teenagers, an investment expert has said that children should be educated and not bullied into saving money if they are to avoid a life of bad debt. Ben Yearsley, from Hargreaves Lansdown, said that the young people's lax attitude towards spending and debt is probably a reflection of their parents' habits. His comments follow a survey from the Personal Finance Education Group (pfeg) that found the majority of teenagers in England have been or are in debt by the time they are 17-years-old and have a "worryingly laidback" approach to money. Mr Yearsley said that the 1.25 trillion of personal debt among the adult population is a bad example to children, a fact that parents "need to think about" before making their children behave more responsibly. "I don't think it is necessarily about forcing children to save it's educating and teaching them about what is going to be needed later in life," he said. Teenagers believe credit card debt does not need to be repaid One of the most significant findings of the pfeg survey is that some teenagers think that credit card credit debt does not need to be repaid at all. Experts are concerned that a lack of understanding on such matters will lead to a rise in individual voluntary arrangements and bankruptcies, which will impact on people's ability to borrow credit in the future. At least one in five consumers in the north-east face serious financial hardship because of bad debt, new research suggests. 22% of people in North East likely to declare insolvency Debt consultancy Thomas Charles told the Observer that 22 per cent of people in the north-east are either 'likely' or 'certain' to declare to go insolvent in the near future. It said that 21 per cent owe more than 10,000 in unsecured credit, including personal loans, credit cards, student loans and overdrafts. Also revealed by the firm is that 19 per cent of Londoners owe at least 10,000 in unsecured debt. This is despite warnings from experts that severe, unaffordable debt often leads to people being refused credit in the future and can make it more difficult to take out a competitive mortgage. Alliance & Leicester told the newspaper that the north-east is one of the most indebted areas of the country, with unsecured debt equivalent to 26.9 per cent to the average income. Meanwhile, a study by Experian for the BBC has found that people in Manchester and Glasgow feel under more financial pressure than other Brits, while the south-west was dubbed the UK's bankruptcy hotspot. |
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| keywords: bad debt habits loans secured credit score history financial money loan trouble bankruptcy finance | ||
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