Younger consumers pressured into excessive spending
Concerns over the level of consumers debt such as credit cards and loans has been steadily rising in the UK with consumer debt hitting record levels and many people turning to IVAs and even bankruptcy in order to try and ease the financial strain that has developed from taking on too much debt.
 New reports now show that younger consumers are getting themselves into debt simply because they feel pressured by peers to keep on spending money even when they have run out of cash.
The data comes from figures from the National Savings & Investments group, and suggested that nearly half of those aged between sixteen and twenty four years of age feel pressured by their friends and peers to carry on spending even when they have no disposable cash. Across all of the age groups the percentage of those that felt pressured to keep on spending and therefore getting into debt when their funds ran dry was around fifteen percent.
One spokesperson from National Savings & Investments stated: "Friends influence all of us in what we like to do, but it is a grave concern if young people are being persuaded by their peers to spend money they simply don't have. If they build up debt from overspending when they are young, they will have nothing left to put away in savings for their future. At this young age, when they are just beginning to earn a salary, manage finances and pay off student debts, it is vital to start good savings habits, rather than going into the red just to be part of the in-crowd."
Many of those that feel the pressure from friends to keep spending turn to credit cards and loans to fund their spending habits, placing them into high levels of debt at a fairly early age.
Alisdair Milton
31st December 2006
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