Credit cards sought by teens who ‘fail to budget’

Teenagers today are unable to budget their finances but are still considering taking out a credit card or a loan, Axa has revealed.

The company’s Financial Task Force has found that 44 per cent of teenagers aged 15 to 17 are thinking of seeking a credit card deal when they become 18.

A further 18 per cent are musing over the idea of a bank loan when they become legally entitled to apply for credit.

However, out of the teens tested by Axa, 70 per cent failed its budget test.

“These studies emphasise what a huge challenge budgeting can be when you’re still relatively new to managing money and making regular financial decisions,” member of the Axa Financial Task Force Professor Nick Chater said.

He noted that many teens of this age may soon be starting work or heading off to university.

In related news, advice on using credit cards abroad has been issued by Apacs, the UK’s payments association, and the Association of British Travel Agents this week.

© Adfero Ltd

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