Talking about our generation

The UK’s population are profoundly undereducated when it comes to looking after their finances; this is more prevalent among the younger generation. Under-30s are particularly exposed to financial difficulties in the future, their lack of forward planning will be disastrous if we see a downturn in economic growth.

A study released by the FSA has revealed a lost generation who are struggling to understand and control their finances. This generation has easier access to credit than their elders, yet are less financially able and have much greater individual financial responsibilities. They are increasingly being expected to pay the costs of their retirement and higher education and are faced with house prices at record levels, factors that combine to create a credit time bomb.

While over-indebtedness affects only a small part of the population, around 3 million say it is a constant struggle to keep up with commitments, when it does strike the consequences can be severe.

With interest rates tipped to increase soon more and more people will be forced into real financial difficulty, this would lead onto economic slowdown and a likely collapse of house prices. With a better understanding of finance this generation could start helping themselves by looking for better deals when renewing a product, 48% of car insurance policyholders, for instance, have taken out a different policy.

This practice can be transferred to credit cards, mortgages, utilities and any number of other financial arrangements.

18 May 2007 | Debt Help | Comments