`Generation spend` racks up debts

Britain can be described as a nation of spenders rather than savers, according to new research.

Despite the high level of personal debt in the UK, more than three million people characterise themselves as "frivolous spenders" who make purchases whether or not they can afford them, a study by unbiased.co.uk, the website for Independent Financial Adviser Promotion, reveals.

Additionally, over 7.5 million Britons admitted that they only save for short-term goals, the study indicates, which could have an effect on the amount of debt they accumulate.

David Elms, chief executive of Unbiased.co.uk, comments: "This year`s research into the nation`s propensity to save shows some improvement, but it is disappointing that we still define ourselves as a nation of spenders rather than a nation of savers."

He added that young people demonstrated the most lax attitude towards saving, with the figures showing that fewer than 30 per cent of young people between 16 and 24 years old put away money towards big purchases.

The findings come after a report by the Registry Trust that claimed that unpaid consumer debts increased by a third last year.