Almost one-third of young people in debt regularly miss their monthly repayments, a factor which could have consequences later in life, according to research from Kensington Mortgage Company.
John Maltby, chief executive, said: ‘Young people need to be made aware of the problems too much debt can cause them in the future. It can cause serious issues when they look for a mortgage ‘ the biggest and most important financial commitment they are likely to face.’
The non-conforming lender found 63% of 18 to 30-year-olds in debt blamed their university days, with low introductory rates and cash-back options on credit cards cited as reasons for getting into debt.
Maltby added: ‘The research indicates a need to offer young people the opportunity to cope with their financial affairs before they snowball, so they avoid becoming financially burdened before they begin their careers.’