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Young people struggling to pay credit card debt
01 May 2008
Spending on luxury items means one in five young people cannot afford to pay their credit card bill, research has revealed.
Competing with their friends over clothes, gadgets and accessories has meant that 22 per cent of people aged between 16 and 34 are struggling to keep up with monthly repayments, mobile phone company Monilink has claimed.
Dubbed "Bling-itis" by Monilink, the peer pressure surrounding the buying of luxury items is supported by the company's statistic that 56 per cent of people believe that you are judged on your appearance and your possessions.
Inability to repay credit card debt has been exacerbated by the credit crunch combined with rising bills for food and fuel.
Personal finance writer Cliff D'arcy said: "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. This 'Bling-itis' is edging them towards bankruptcy."
A report by Credit Action stated that total UK personal debt at the end of March 2008 stood at £1,430 billion.
