Friday, Apr 20, 2007
aren't the 'Friends' cast all in their 40`s by now?
Firstrung: Debt culture more prevalent in early 30's
The 'Friends' generation - those in their early 30s - have the highest borrowing of any age group and they also have a tendency to miss repayments, according to Alliance & Leicester's latest Borrowing Monitor research...People in their early 30s have the highest borrowing including mortgages of any age group - and spend the highest proportion of their income paying interest. They have the highest mortgage exposure and their average unsecured debts total £5,863, 29% above the national average.
Posted by converted lurker @ 12:28 PM (153 views) Add Comment
6 Comments
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1. nearly30 said...
Article is quite accurate of recent social trends - although the 'Friends' generation as a tag is very very poor.
Friends started in 1994 - about people in their mid to late 20s - so some 13 years later - these people should be late-30s to early 40s.
Personally - i think this generational group had a great time (financially) - for the following reasons:
* student debt low - very low (in 1995 ave stud debt was £600 yes £600)
* housing market picked up - so bought when prices low and now worth 204% more.
* having capital has meant that they could raise capital for buy-to-let and investments (i know many who have)
* the job market improved and there were a lot less graduates around 13 years ago
* they are the true consumerist children of Maggie lot - IMHO!!
* they should be classed as the Generation Blair!
Personally - I find myself outside this group but still on the edges (my older siblings are in this group).
I feel the IPOD Generation (18-30) will always be in competition with 'Blair's Generation' (over-30s) as they will be the FTBS, the new Parents, will have the careers and the capital to succeed.
The IPODDERS or KIPPERS are already seeing their options reduced dramatically - socially and financially. The idea that they have less consumer debt is probably true - although student debt is much much higher. Their ability of invest in themselves is incredibly reduced and many IPODDERS are KIPPERS or 'Bomerang Generation' because they cannot move forward into their lives.
Oddly there is a bonus - being an IPODDER / KIPPER / BOOMERANG - is a lot cheaper! I should know I am one (in a way).
But this is not good for society though and will breed huge inter-generational resentment - and those not fortunate to go to uni or want to improve themselves (education) will fall further out of society (Not In Education Employment of Training - NEETS) - and a whole generational void will happen!!!
2. Shipbuilder said...
You're spot on with your first 4 points there, Nearly30. I'm 31 and my generation seem to have caught literally the very last of all the remanants of opportunity in this country - actual University grants instead of fees, friends just managed to but property before it all went ballistic, got a decent job with a 2.2 (i've interviewed graduates for the same company with 1sts and PhDs). Looking back, i've been lucky and i'd hate to be growing up now.
As for Maggie's children/Blair's generation - no. I was brought up with decent, social values which taught me to treat others with respect and generosity, avoid debt and be socially responsible - all which pre-date both of those charlatans. That's the real benefit, I feel.
3. C'mon Correction said...
I agree nearly30. I'm in a similar situation to yourself (age and older siblings in the Blair's Generation).
However I don't think enough thought is being granted (by older generations, politicans etc) to the IPOD generation. I don't beleive they are just going to 'take it on the chin' that their standard of living will be so much worse than Blair's Generation. I see the push for wage growth in the now under 30's is going to be HUGE over the next 15 years, this will increase both medium-term inflation and interest rates and will rapidly even the disparity between the two generations.
4. maddison said...
I graduated in 1992 from a good university with a 2:1 degree and yes I have alot of equity in my house. But The early nineties were actually pretty depressing and the ipod generation 20 somethings are having more fun time than I did. At the end of the day it was very poor job security and pretty low incomes funnily enough hence low house prices. My first graduate job was £8000 pa and long hours were the norm. I was made redundant 3 times in 5 years. Debts were low because err the interest rates were high. My company is now paying grads £23,000 and their standard of living seems much better than mine was....
5. nearly30 said...
maddison - apologies for being too generalistic as your situation seems contrary to my post. My only point was to try and make a distinction between people in their 30s and 20s - it would appear that although people in their 20s have a tougher time starting their lives it is a lot cheaper for them than the 30-somethings - who have houses, familes, are married and careers (built on and facilitated bydebt???).
What is true is that wealth, 'success' and security is heavily skewed towards the Baby Boomers and they are casting a very long shadow that is stiffling younger generations from growing and developing (in the traditional sense).
Luckily BBs are generous but how much this will continue is anyones guess - esp. when IPODDERS hit their 30s and find govt. bringing in more tax and legislation that hits the young.
My concern is that we are mortgaging our futures away and the last 10 years has been a big olde con to get us spending and racking up debts that we'll never pay off - "have we all been lied to?"
It would appear than debt averse IPODDERS will be the big winners when it all goes pop!!!
6. little professor said...
Real ages:
Chandler 37
Rachel 38
Joey 39
Ross 40
Monica 42
Phoebe 43
Not exactly "early 30s"...