Credit crunch affecting younger consumers

According to a recent report the credit crunch is having a severe impact on younger consumers aged between 18-34. Officials have said that people in this age group have found themselves under financial pressure, are over-taxed, and have a lot of debt to deal with, describing them as the youth of ‘broke Britain’. It is thought that this group is amongst those feeling the credit crunch the most.

Over half of people within this age group are said to have debts of £10,000 and one fifth have debts of more than this amount, not including any mortgage debt. People in this age group have average debts of £6000, and a third have no form of savings at all. There are concerns that unless changes are made the nation could be facing a post-retirement poverty epidemic in the future.

One economics researcher said: ‘We are living in “broke Britain”, not broken Britain, and my generation is suffering. We are potentially more capable of managing our money than previous generations but we have been let down by the financial establishment and government.’

People in this age group have been branded iPods, and one official said: ‘What is striking in this report is that Ipods possess the highest potential for appreciating the good value of advice and yet are not benefiting from it. Trust and the ability to explain complex concepts are the cornerstones of their service expectation. As the professional body for insurance and financial services practitioners, the CII Group believes that restoring the Ipod generation’s trust and confidence is paramount.’