The positive outlook of British youngsters is likely reduce the likelihood of them becoming insolvent early in life, it has been alleged.
A survey conducted by debt consultants Thomas Charles shows the prevalence of insolvency is linked with age.
As a result, despite mounting student debt, rising university tuition fees, soaring house prices and the exorbitant cost of getting married, the majority of 18- to 24-year-olds are optimistic about their financial futures, according to James Falla, Thomas Charles' managing director.
"Generally the attitude of younger people in jobs tends to be, in my view, a positive one, so they're thinking: 'I'm not going to declare myself bankrupt and all the bad stuff that comes with that - I should be able to work my way out of this, [so] give me a couple of years, and everything should be fine,'" he explained.
Conversely, the over-50s generation is suffering from a lack of confidence.
"For an older person in their fifties, time's run out," Mr Falla said.
"They're saying to themselves: 'Well actually, is my career going to get any better than it is? Am I truly honestly going to be earning any more than I am at the moment in five years or in ten years?' – and the answer is, probably not."
Consequently, IVAs are increasingly being seen as an acceptable way to alleviate debt.
© 2007 Adfero Ltd
