Loans are a key part of British teenagers' financial plans for their adulthood, a new survey claims.

The study by the AXA Financial Task Force suggests that 18 per cent of 15 to 17-year-olds are thinking out taking out an unsecured or secured loan when they turn 18.

However, the company has advised that before taking on such a responsibility, young people should hone their budgeting skills in order to avoid financial trouble.

Some 70 per cent of 15 to 17-year-olds surveyed failed AXA's budgeting experiment, which asked 20 young people from "middle Britain backgrounds" to control their household's budget for one week.

Professor Nick Chater, a member of the task force, said: "These studies emphasise what a huge challenge budgeting can be when you're still relatively new to managing money and making regular financial decisions."

People between 20 and 29 years of age are more likely to take out debt consolidation loans than other age groups, a study by Halifax found in January.
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