Early 30s have high unsecured debt

Borrowers in their early 30s have the highest unsecured loans of any age group, according to a recent survey.

The poll conducted for Alliance & Leicester shows that people between 30 and 35 have unsecured debts of £5,863 on average, which is 29 per cent more than the national average.

People in that age group are also the most likely to make late repayments and most likely to pay only the minimum repayments.

Chris Rhodes, the director of retail banking at Alliance & Leicester, said: "The early 30s are a transitional age where careers are taking off and before family responsibilities kick in.

"Many are buying their first homes at this point, but are also enjoying rapidly rising salaries and are keen to enjoy life to the full. Some, particularly those not trying to get on the housing ladder, may find themselves in financial difficulty as a result living beyond their means."

Other age groups have not gotten themselves into the same debt circumstances. Mr Rhodes said that 18 to 30-year-olds are hesitant about taking out loans because they still have student loans to think about.

Meanwhile, research by Scottish Widows shows that parents are increasingly expecting children to repay money parents have given. In 1996 almost one in ten expected to recoup money given to children, possibly as deposits on houses, but by 2006 that figure had doubled.