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'Cavalier' spenders borrow more

Britons have shown a more "cavalier" attitude to their finances in recent months, borrowing more money to fund a less restrictive lifestyle, according to new research.

Insurance giant AXA said its study revealed a split among age groups, with younger people more likely to cut back on savings and borrowing to fund their lifestyle, while those nearing retirement felt "bleak" about their finances.

Fewer people were cutting back on luxuries such as going out, and buying alcohol and take-away meals, especially among younger age groups, the survey of around 2,000 adults found.

Around one in 10 of those questioned said they borrowed more money on their credit cards or loans, especially among those finding it hard to make ends meet.

Debt repayments and savings fell in the past few months, with just 6% of young professional workers paying more off their overdraft.

AXA's UK director of customer partnerships Nick Turner said: "Although it seems heartening that confidence and optimism exists among the younger population, caution must be urged against borrowing to make life more comfortable.

"We're also seeing an enormous drop in confidence from those in retirement, for whom life seems to have become ever harsher as the country continues to face the task of tackling the enormous deficit.

"The result is that savings are being depleted or ignored, debts are mounting, and risks are being taken with assets as financial products are being scrimped on."


From Belfast Telegraph