Many young Britons are committing financial suicide with a high-spending lifestyle they cannot possibly afford, experts have warned.



They are pursuing the lifestyles of A-list celebrities with only a Z-list income, often displaying a reckless attitude to borrowing, say the researchers.

Many young adults do not view bankruptcy as shameful, instead seeing it as a tool to escape large debts amassed though buying fashionable clothes, going on exotic holidays and socialising.

"The use of credit to meet everyday expenditure was a way of life," according to the report of the study.

"For some the line between needs and wants was virtually indistinguishable."

Bank of England figures show borrowing on overdrafts, personal loans and credit cards has surged in recent weeks.

It is not clear whether this is a sign of feckless spending or evidence that many are being forced to borrow more simply to make ends meet.

The latest research was carried out by the Personal Finance Research Centre at Bristol University and Commissioned by Standard Life Bank.

The team said: "Young adults seemed especially susceptible to strong pressures to consume."

Researchers found that parents are increasingly being forced to put their own finances on the line in order to bail out their adult offspring. This can involve borrowing against their homes.

Twenty years ago, going bust was a mark of shame and a demonstration of failure.

However, the researchers found: "A core minority saw debt consolidation and insolvency as easy ways out of problem debt."

Chief executive of Standard Life Bank, Anne Gunther, said: "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.

"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 is financial suicide."



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