With the amount of money issued via loans seeming to show no signs of curbing and Britain continuing its ‘buy now, save later’ culture, a number of consumers could find themselves with increasing financial problems in later life.

As Britons continue to take out more loans as they get older, less money is going into pension pots and as a result borrowers are more likely to incur debt management difficulties

A study by Thomas Charles indicated that some 14 per cent of consumers aged between 18 and 24 claim to often struggle making repayments on Secured Loans and other types of borrowing.

This proportion rose to 24 per cent for those between the ages of 35 and 44. However, more than a third of those over the age of 55 had difficulties making credit repayments.

Director of the firm James Falla claimed that borrowers increasingly develop debt problems as they get older as they take on more financial commitments such as purchasing property, having children and getting married.

He suggested that if Britons continue their "buy now, pay later" attitude and carry on failing to save sufficiently then "an inevitable portion of the population will run into financial difficulty".

A study by AA Legal Services revealed that many young people are afraid of inheriting their parents’ debt when they pass away.

The research indicated that 70 per cent of young Britons are concerned that as their parents are likely to live longer, they spend the money which was intended for their inheritance and so leaving "a legacy of debt".

Head of AA Legal Services James Molloy said: "Recent concern over the cost of care homes, equity release schemes and growing consumer debt among the elderly are changing the way many young people view the concept of inheritance.

"As young families take on bigger and bigger debts to get a foot on the property ladder, few are banking on a future inheritance to help clear the mortgage."

Further research from a study by Friends Provident indicated that many Britons are unaware of how much money they will need to fund the comfortable retirement they desire.

Some two-thirds (68 per cent) believed they would require more than government handouts to be financially secure in later life, needing at least £600 every month to live comfortably.

However, 32 per cent of working adults believe they are set for a financial struggle as they get older as 14 per cent claim that they wish they had set aside more money.

Head of pensions marketing Jeremy Ward said: "Considering that a quarter of people haven’t yet started planning or don’t intend to plan for their retirement, this is something they can only dream about."

"By ignoring how much they need to save to live comfortably in retirement or how soon they need to start saving, many Brits are facing a potential pension shortfall," he added.

As a result, those concerned about running up debts in later life, which in turn may leave them with not enough retirement savings, could be well advised to take out a Debt Consolidation loan.

Earlier this week, David Kuo, head of personal finance for the Motley Fool, claimed that: "Consolidation Loans can be a welcome lifeline for people caught in financial difficulties."

However, the study revealed that as three out of five borrowers who take out a Debt Consolidation Loans go on to acquire more debts the products should be used "sensibly".

As a result any consumers looking to take out a loan to help manage their finances and start saving for the future could be well advised to handle their finances with care.

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