According to Alliance & Leicester's latest Borrowing Monitor research, the 'Club 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 most older groups. However, many of them have student loans, which account for 47% 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.
By contrast, the 'Friends' generation - those in their early 30s - have the highest borrowing of any age group and they also have a tendency to miss repayments. People in their early 30s have the highest borrowing including mortgages of any age group and spend the highest proportion of their income paying interest. They have the highest mortgage exposure and their average unsecured debts total £5,863, 29% above 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.
Chris Rhodes, Director of retail banking at Alliance & Leicester said: "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. Some, particularly those not trying to get on the housing ladder, may find themselves in financial difficulty as a result living beyond their means. 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."
