Easy come, easy go: generational attitudes to borrowing

A report which looks at why people borrow and how borrowing may be mitigated and even avoided at different lifestages

A new report published today by the Personal Finance Research Centre commissioned by Standard Life paints a bleak picture of the rising debt problem in the UK.

The report highlights: borrowing confirmed as most common among people aged between 20 and 50 credit is often reflected in the rising expectations of standards of living and wealth; young adults susceptible to strong pressures to consume and prepared to borrow to do so; parents feel pressured to borrow to provide for all their children's needs; housing equity seen as the solution to debt problems; a core minority of young adults see debt consolidation and insolvency as easy ways out of the 'debt problem'.

Rising borrowing among the young to fund lifestyle is common place while debt consolidation and insolvency are seen as easy ways out for many young people.

Parents too often feel pressured to fund lifestyles and provide for their children's needs.

Housing equity, especially among consumers in or approaching the family years, is viewed by many as the solution to all future financial needs.Anne Gunther, Chief Executive, Standard Life Bank, said: "Consumer attitudes to credit and borrowing have changed dramatically over the last few years.

We are not only seeing people trying to keep 'up with the Joneses' but also aspiring to a lifestyle more akin to A-list celebrities.

Credit is not only freely available but considered a way of financing lifestyles rather than reflecting need.

Rising debt is also becoming a key issue for younger people from primarily reasonably affluent backgrounds.

"A seismic change in mindset is required to begin to unwind the chronic debt issues we face in the UK.

Pinning your hopes on housing equity or thinking that insolvency is the easy way out of debt is financial suicide.

"Based on the findings of the report Standard Life makes the following policy recommendations: Government should provide an environment where people will make better and more informed decisions about life choices, by: Reinforcing and strengthening current financial education and capability initiatives.

Producing a more co-ordinated approach to bring together and maximise the myriad of initiatives coming out of government, regulators and providers.

Using tax policy proactively to provide greater incentives for people to make provision for their futures.

Producing high profile public information campaigns to dispel some of the myths around housing equity and use of insolvency.

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