A new report has suggested that some young people in the UK could need to consolidate debt in the future because they are spending more than they can afford on luxury goods.
The research, carried out by Monilink, found that 71 per cent of 16 to 34 year olds are spending more than they can afford in a bid to "keep up" with their friends.
In particular, young people said they were getting into debt spending money on holidays (27 per cent), drinking and going out (21 per cent), clothes (19 per cent), gadgets (12 per cent), home improvement (ten per cent) and jewellery (three per cent).
Nearly a quarter (22 per cent) said they were struggling to repay debts and 62 per cent still had credit card borrowing that was over one year old. This suggests that some of these young people could soon opt for a consolidation loan to help them manage their finances.
John Milliken, managing director of Monilink, commented: "This study highlights the price younger Britons are willing to pay for peer acceptance.
A recent report from Abbey Banking suggested that 21 per cent of children aged between 11 and 15 were worried about getting into debt in the future.
