iPod generation being hit by debt problems, expert says

11 November 2008

The so-called iPod (insecure, pressurised, overdrawn and debt-ridden) generation, which comprises anyone under the age of 35, is being hit particularly hard by the ongoing financial problems, it has been suggested.

According to independent financial adviser Mark Dampier of Hargreaves Lansdown, this demographic is more reliant than others on borrowing, the Times reports.

He said: "Young adults are in a difficult position. They have been lulled into a false sense of security by banks and have been encouraged to borrow so much for so long."

The expert went on to say that in the context of an economic downturn marked by a sharp decline in lending, it is "inevitable" that such people will suffer.

Meanwhile, the Times points out that younger workers are also likely to be the most affected by rising unemployment, as firms tend to operate a "last in, first out" policy when making staff members redundant.

Recently, Charles Davis, economist at the Centre for Economic and Business Research, said that in order to return to a more stable position, the UK needs to reach a situation where consumers are less reliant on loans and credit.

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