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Debt solutions consultancy Thomas Charles has revealed the results of a survey
amongst graduates to establish the impact of their levels of debt on their
ability to buy property.
The company surveyed 950 people across the UK who have graduated since 2001. Of
these 85% were under 30 and 65% aged between 23 and 28, a prime age range for
young professionals wishing to buy their first property.
The survey suggests that the current levels of unsecured debt amongst graduates
are having a major impact on the property market with fewer graduates being able
to afford to buy a property and having to postpone getting on the property
ladder by several years.
Of those interviewed, only 10% currently had a mortgage, and 58% said that they
had been unable to buy a property or have had to postpone it because of debt.
When asked how long it might delay them getting on the property ladder, 36%,
said up to 3 years, 23% said between 3 and 5 years, 19% between 5 and 10 years,
and 24%, said they could not foresee being able to buy a property in the
foreseeable future.
James Falla, Director of Thomas Charles, commented: "We're not surprised that
graduates are finding it difficult to get on the property ladder. With 60% of
graduates leaving university with a student loan debt legacy they are already
off to a bad start.
"Add the attractions of graduate loans and credit cards and it is easy to see
how unsecured debt piles up even when you have a job. They find themselves
living and working with others who are earning good salaries with high cost
lifestyles.
"Trying to keep up with these lifestyle expectations means that many graduates
just get further in debt, often to a critical extent.
"Many of our younger
clients at Thomas Charles clearly fall into this category.
2For many the idea of
ever getting on the property ladder seems a distant prospect and for a
considerable number, a quarter of our survey, it appears impossible in the
foreseeable future."
The survey also showed that debt has an adverse affect on graduate savings and
pensions too.
Two-thirds of respondents said their level of debt was seriously affecting their
ability to save.
Just over a half, 51% said it adversely affected their ability to make pension
contributions.
Source:
Getting Paid
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