The latest borrowing survey from Alliance and Leicester confounds the stereotype of the debt-ridden younger generation, suggesting credit card debt is at its lowest in this age group.
Whilst the under 30s do have the highest levels of non-mortgage debt, almost half of this is accounted for by low-cost loans taken out in order to study at university.
"Our research confounds the stereotype that young people are spendthrift and irresponsible with their finances," said managing director of Alliance and Leicester Retail Banking, Chris Rhodes.
Those in their 20s actually spend the same proportion of their income servicing debts as people in their 30s and 40s, he continued, due to the lower rates attached to the student loan debts they have.
"Student loans are their largest commitment and whilst the interest on these are low, it still seems to constrain their appetite for other debt," he added.
"The interest burden of this age group is not out of line with older groups."
Alliance and Leicester's Borrowing Monitor, the survey that has uncovered this information, is a barometer of debt patterns in different age groups and regions of the UK, releasing its findings once a year.To read more about loans, click here.
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