Young Brits could be heading for bankruptcy

Posted 2008-04-29

Young people in Britain could be pushing themselves closer to bankruptcy due to overspending, a personal finance expert has warned.

New research by Monilink has found that over a quarter of people aged between 16 and 34 years old are in competition with their friends over purchasing the latest gadgets and fashion items.

The survey found that 21 per cent of respondents would prefer to spend their money on personal items rather than save it, while 22 per cent admit to having built up too much debt and are now finding the repayments a strain.

Cliff DArcy, a personal finance writer, used the term "Bling-itis" to describe this trend.

"This Bling-itis is edging them towards bankruptcy. Two-thirds of these young people have admitted that they are still trying to clear credit card debts that they built up two years ago," he said.

Debt charity Credit Action recently reported that personal debt in the UK grew by £113 million over the last 12 months.

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