Is peer pressure adding to consumer debt levels in the UK?
With rising levels of consumer debt in the UK, many experts and groups have expressed concern, and many households and individuals have been left to try and deal with a range of high interest debts such as credit cards, store cards, and personal loans. And recent data has suggested that for the younger generation much of the consumer debt culture comes from peer pressure and the need to borrow money in order to keep up with friends when it comes to buying the latest gadgets and fashion, as well as going out.
The National Savings and Investment Group ran a survey late last year to look at this trend in relation to rising consumer debt. The results of the survey carried out showed that those feeling most pressured by friends and peers to spend money that they just didn’t have was the sixteen to twenty four age group. As a result of this peer pressure many turned to credit cards and personal loans in order to fund this spending, as well as borrowing from family members.
One spokesperson from National Savings & Investments stated: "Friends influence all of us in what we like to do, but it is a grave concern if young people are being persuaded by their peers to spend money they simply don't have. If they build up debt from overspending when they are young, they will have nothing left to put away in savings for their future. At this young age, when they are just beginning to earn a salary, manage finances and pay off student debts, it is vital to start good savings habits, rather than going into the red just to be part of the in-crowd."
One of the main concerns about this peer pressure and increased spending is that many people will start to get into debt from an early age, which could simply add fuel to the fire when it comes to rising consumer debt levels in the UK in the coming years.
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