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Friday Finance

It’s Friday, some of you may be winding down to a relaxing weekend, some of you may have plans, weddings, parties to attend. At some point we may all have to spend a bit of cash on shopping, petrol, drinks.

New research has shown that in the second quarter of the financial year, people in their 20′s and 30′s seem to go spend crazy without any real though of the aftermath and debt.

AXA studied the spending trends of these young adults and realised that they were very open about spending, taking out credit cards and not really think about the consequences. It co insides with the return to university, holiday’s and the possibilities of new jobs and moving to new areas.

More than 8 out of 10 young adults has a credit card, which is a whopping 84%! whilst only 11% borrowed money on their over drafts and 9% on their credit cards and loans.

The number of young adults paying off their outstanding debts such as credit cards fell from 30% to 17% in the second quarter. I feel there are going to be some soppy phone calls to parents for help.

I must admit, I did it, I was a victim of “free money” and obviously during my 20′s banks were more than happy to supply you with an endless ream of credit cards. I learn the hard way and nearly had to bankrupt myself after my Masters Degree. Incredibly embarrassing, but I managed to drag myself out of a financial rut with the help of my bank, and stayed afloat, and have for years, because I haven’t let myself get caught up in credit and schemes to make you sign the dotted line.

There are two sides to this story, I do believe that as a young adult you need to learn about what is best and works for you, although as a parent you probably worry about the amount of debt your kids could rack up, but as long as you inform them about the consequences and they fully understand, then they can go off and experience debt for themselves. I did, and I know it made me and incredibly savvy person.

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