Under 30s battle daily debt in Britain

15 January 2008 / by Verity G
Twenty-somethings living in modern Britain have large overdrafts, very little disposable income and feel they will never be able to get onto the property ladder, according to a survey by Halifax.

The research revealed that a third of under 30s have trouble affording their basic overheads thanks to low wages and an average debt of £8,000. Around 32 per cent of Brits within this age group also say that they either have no funds in their savings accounts or so little, they haven't even got a savings account.

Worryingly, the remaining two thirds have only managed to scrimp away a meagre £2,362 in the event of an emergency and 38 per cent say they are too poor to be able to pay into a pension scheme.

The poll of 3,000 20 to 29-year-olds also revealed that many under 30s feel that they cannot afford to buy their own home while recent statistics released by the British Banking Association (BBA) confirmed their fears after it found that the average morgage is now an extortionate £152,800 - compared with £50,000 in 1994.

Andrew Norton from Halifax Financial Services comments: "These results are worrying. Young people may feel they can't afford to save, but they can't afford not to."

What's more, the average debt for the under 30 age group is steadily increasing. The Halifax survey found that the average twenty-something has debts of more than £6,330 as well as an overdraft of £1,531. This means on a typical salary of £14,000, it is likely to take around four-and-a-half years before there is any hope of getting out of the red.

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