British teens lack awareness of credit card debt

Most British teenagers “lack awareness” when it comes to credit card borrowing, a new study has found.

Debt charity Personal Finance Education(PFE) found that 90 per cent of adolescents felt that credit cards are an “easy way” to obtain funds that would otherwise not be available.

And in a statistic that may surprise some, one in twenty said it was their understanding that credit card debts never had to be paid off if the borrower did not wish or was unable to.

This lack of knowledge is causing many teenagers to fall into debt, according to PFE.

Meanwhile, HSBC has claimed that its policy of allowing youngsters to operate two accounts is a good way of preparing them for later life.

“Banks are slowly but surely trying to do what they can to help people start managing finances at a younger age, to give them a head start”, said a spokesperson.

© Adfero Ltd

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