Debt info for younger spenders

Wed, 07 Dec 2005

Young people are being warned against debt through a new campaign launched by the Office of Fair Trading (OFT).

The OFT's online campaign – Be choosy about credit – hopes to help Britons between the ages of 18 and 24 make an informed decision about credit.

Online budgeting tools and calculators to work out interest rates are available in order to allow young people to shop around for the type of credit card or personal loan that best suits their needs.

Credit is "of growing importance" to young consumers and is an "established part of their financial landscape", says the OFT's chief executive, John Fingleton.

"Our campaign aims to give this group the skills they need to budget and be as savvy borrowers as they are shoppers."

Access to borrowing facilities like credit cards and personal loans is seen as a sign of freedom and an affirmation of adulthood, says the OFT.

However, young consumers are the ones most worried about debt in the festive season, research shows.

Women are likely to spend smaller amounts on various forms of credit, like store cards, catalogues and credit cards, according to the Consumer Credit Counselling Service.

Men have more debt on credit cards and personal loans, with higher balances. It is women, however, whose overall debt levels in proportion to their income are escalating more rapidly.

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