1 May 2008
Young people are getting into debt on their credit cards because they are spending money they do not have, it has been suggested.
Personal finance writer Cliff D'Arcy stated that younger consumers are "competing" with their friends for the latest gadgets and this is leading them into trouble.
He cited a survey from Monilink that revealed a quarter of consumers in the 16 to 34-year-old category are in this situation.
Mr D'Arcy called the trend "bling-itis" and warned these consumers that they might be heading towards a rocky financial path.
"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 commented.
Such consumers are buying products to improve their appearance, he noted, but this is piling on debt.
Monilink found that 56 per cent of those polled said that individuals are judged on what they have and how they look.