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This article is for information only. It does not constitute advice. Chase Saunders Ltd does not provide services for savings, investments, mortgages or insurance. You should seek advice on these areas from a qualified financial advisor.

Teens look set for debt, says study

Article Category: Debt Management Help and Advice

Teenagers are intent on getting their hands on credit when they turn 18, one survey has shown.

An Axa study found that almost half (44 per cent) of British teens plan to take out credit cards and a further 18 per cent aim to get a bank loan when they become an adult.

However, an experiment that gave teens the reins on family budgets for a week showed that nearly three quarters (70 per cent) failed to balance the books, with the teens overspending by an average of 16 per cent.

Nick Chater, a member of the Axa Financial Task Force, said the study shows how difficult it is to make financial decisions at such a young age.

"Many teenagers are on the cusp of leaving home for university or to get a job and while some will naturally approach money with diligence, our study suggests that they simply may not be able to cope with budgeting effectively," he added.

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Created on 13/06/2008 10:16:09
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