Young 'avoiding debt and saving up'

8 April 2009 05:59pm

Young people are shunning debt in favour of saving up for things they want to buy, a survey has showed.

Seven out of 10 people aged between 16 and 26 said they were uncomfortable with the idea of debt and would only borrow money as a last resort.

Only 4% of the 500 people questioned said they felt very comfortable with debt, according to Ci Research.

Around 62% of young people said they did not currently have a credit card and 75% said they were keeping a close eye on their finances.

A quarter of people said they were now saving more than they had been, while 6% said they planned to start saving and 19% plan to set aside more cash as a result of the current economic climate.

Just 12% of those questioned said they were now saving less or had stopped saving altogether.

Colin Auton, of Ci Research, said: "The report reveals undeniable proof that recent economic changes have influenced young people's behaviour and opinions on both spending and saving."

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