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Young adults blame their friends for debt worries

Peer pressure has been blamed for the UK's rising levels of personal debt.

A survey by National Savings & Investments (NS&I) found that nearly half of young adults admit that their friends encourage them to overspend.

The trend declines with age, however, with just five per cent of middle-aged people admitting the same and only four per cent of pensioners claiming peer pressure lead them into debt.

Nevertheless, NS&I warns that the research has "damaging implications" for consumer debt and savings levels, with young people allowing peer pressure to put their long-term financial health at risk.

Just under a quarter of 25 to 34-year-olds say that friends influence their personal spending, as do 13 per cent of 35 to 44-year-olds.

However, warnings over debt obscure the fact that many people are heeding the message to save.

Up to one in four Britons now hold an individual savings account, with 16 million people saving a total of £181 billion in this way.

This is almost equal to the total amount owed on credit cards, overdrafts, unsecured bank loans and hire purchase agreements.

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14/12/2006 09:00:00

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