With the credit crunch affecting spending and homeowners worrying about the stability of their finances, it seems that Britain’s youth are as hooked on credit cards as ever.

Young adults leaving education and entering employment are increasingly relying on credit cards to keep up with their busy lifestyles.

The older generation are reported to be cutting back on spending in a big way, causing many credit companies to worry about their future.

However, it seems that the credit companies have little to fear as a new generation of spenders lurks just around the corner.

Today’s students have been brought up on a diet of debt, told by the government that they have to finance university with loans and tempted into debt by banks offering interest free overdrafts.

When this money runs out, many are turning to credit cards in order to carry on living life to the full. For a whole generation brought up on debt, credit cards seem the next logical step when the ‘free credit’ runs out.

The implications of this are good for the credit market as it stands at the moment. Currently we live in an economy based on borrowing and spending, therefore the next generation have to keep up with that trend for the markets to remain buoyant.

The personal implications are not so good. Graduates can end up tied to a bank where they hold many debts and cannot get good value credit. Many may find that when it comes to choosing a mortgage their choices are limited.

In a time when securing a mortgage is harder than ever before, the younger generation certainly do not want to create more difficulties for themselves in this area.