Member Article

Going bust no longer such a stigma

Going bankrupt has lost its negative connotations – for the young, at any rate. Nearly one in four young people think it would be fine to declare themselves insolvent in order to clear their debts. Around 22% of people aged between 18 and 34 – the equivalent of three million people – said they would consider going bankrupt or taking out an Individual Voluntary Arrangement if necessary.

Twice as many under-34s think insolvency is an acceptable solution to their problems than those of their parents’ and grandparents’ generations, said analyst Mintel. Mintel found that many young people had adopted an “easy-debt lifestyle” with those aged between 18 and 34 the most likely of any age group to have unsecured debt. Some 60% owe money on credit cards, overdrafts and loans and they have also racked up higher levels of debt than other age groups, owing an average of £3,200 each.

Todd Davis of Mintel said: “Student loans and the endless stream of credit card offers, overdraft extensions and hire purchase mean that there is no longer the stigma of going into debt that there once was. But the fact that it is now more accepted has done little to alleviate the stress of accumulating high amounts of debt.

“Bankruptcy is now widely accepted among young adults mainly because it is the natural follow on from rising debt but also because the Government has made the conditions of bankruptcy less painful.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .