Resolved Question
Are most people in debt or do they have savings?
I seem to be the only one of my friend who doesn't have any debt whatsoever and I'd just like to know if this is commonplace or rare in the UK today. I save £1200 per month though I'm not saving for anything that I can think of I just like the security of saving and knowing I can rely on myself if needed. If you can answer this can you tell me how much debt the average 23 year old in the UK has?
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well I'm planning to go back to uni, so I'm pretty much negligible.
it's great that you're saving a significant amount of money per month (58% if you're a professional at £25k pa or 96% if you're earning £15k pa, or 48% if for some obscure reason you're earning money in the £30k region).
the recent changes in the great moderation has meant people are consuming with a larger proportion of their income. The last time I have checked, the percentage of income in a standard UK earner put into saving is virtually nil. This has meant people are running around with credit problems and they have pretty much put themselves between a very hard place and a bunch of debt collectors.
I would agree with you that lacking any savings would mean it's harder for you to bounce back or have some sort of security. I would further argue it has led to a less than speedier recovery in the economy and which meant the government had to go into more deficit in order to pump things up. Whether the government would had decided to spend even more if people saved is another issue entirely.
So in regards to savings, I very muc doubt people would have saved anything at all but they are likely to be in debt due to over consumption.
With reference to a few people I met out of uni, I would say the average debt wouldn't be more than £10k, but I would guess anything up to £5k would not be uncommon. I wouldn't imagine the numbers going too high because lenders tend to be more weary of under 25s, for reasons beyond me.
Hope this helps
it's great that you're saving a significant amount of money per month (58% if you're a professional at £25k pa or 96% if you're earning £15k pa, or 48% if for some obscure reason you're earning money in the £30k region).
the recent changes in the great moderation has meant people are consuming with a larger proportion of their income. The last time I have checked, the percentage of income in a standard UK earner put into saving is virtually nil. This has meant people are running around with credit problems and they have pretty much put themselves between a very hard place and a bunch of debt collectors.
I would agree with you that lacking any savings would mean it's harder for you to bounce back or have some sort of security. I would further argue it has led to a less than speedier recovery in the economy and which meant the government had to go into more deficit in order to pump things up. Whether the government would had decided to spend even more if people saved is another issue entirely.
So in regards to savings, I very muc doubt people would have saved anything at all but they are likely to be in debt due to over consumption.
With reference to a few people I met out of uni, I would say the average debt wouldn't be more than £10k, but I would guess anything up to £5k would not be uncommon. I wouldn't imagine the numbers going too high because lenders tend to be more weary of under 25s, for reasons beyond me.
Hope this helps
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Other Answers (5)
- Well you are doing very well then and in a much better financial situation than lots of other people of your age group ... Are you still living at home? relatively small household expenses ? .. Or you get a salary well over the average ,, Most younger people have to pay rent or mortgages, travel and living expenses. car possibly ,, fuel costs, council tax, insurances . TV licence and a host of other things that rather preclude them saving much,, or at all .. They arestill establishing careers and earning power .. Also might depend on family affluence .. Lots have debts from student loans at University etc . Older people often do not have debts , and have capital in the bank .. Their houses are paid for and they are reaping the benefits of a life's hard work ,,
- I am in debt to the building society for my mortgage, and to the bank for my credit cards. I have savings in the same building society, and in my current account; together with an ISA, various stocks and shares and a personal pension fund.
Most people have both debt and savings. - The only debts I incur are credit card which is paid off automatically each month and interest free via DFS. My savings would clear these debts many times over but they are working for me not against me.
Like fire, money is a good friend but a bad master. School kids should be taught how to manage money from an early age. - The funny thing is about your question is, IF you have savings, your probably in debt lol
~Andre J Pickens
Blog: Http://www.ghb.ajpickens.com
My business: http://www.apickens.greatesthomebusiness.com - i save at least 10% of my money i get a week, for the same reasons.
it depends if they've gone to uni or just got a job after leaving school i think.
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