Recent research from the Alliance & Leicester has found that although the under-30’s have the highest debts, low-cost student loans overshadow credit card debt. On average, they have £1,073 outstanding on credit cards, while 30 – 50 year olds have £2,580 owing on theirs. Mortgages for the under 30’s tend to be one and a half times bigger for this age group than the next - £126,000 on average compared to £79,000 for 30 – 50 year olds.
Our view
All these figures do is reflect that younger people starting out on life have had little opportunity to create wealth and are still in the high 'debt' stage. When they reach their 40's and 50's they too will have lower debt compared to the 'nearly 30 somthings' at that time.