OUR parents and grandparents would never have dreamt of missing a mortgage repayment and using the cash to pay for a holiday. They'd have seen such behaviour as downright irresponsible.

But new research suggests younger people are increasingly prepared to forgo repayments on mortgages, loans, pensions and tax debts in order to splash out on their social life or luxuries.

A survey of 2,000 people carried out by Debt Management Associates reveals 81 per cent of 16 to 34-year-olds would miss repayments rather than rein in their spending.

Not so long ago, the thought of slipping into the red would send most people into a panic, but nearly a quarter of today's 16 to 34-year-olds don't worry about missing a payment on their credit or store card, the survey found.

The findings come as debts on credit cards increase. Consumers borrowed a record amount on plastic during February.

The Bank of England says individuals borrowed £9.21bn on their credit cards last month, the highest figure since records began in 1993.

Overall consumer credit - which includes credit cards, loans and hire purchase agreements, but not mortgage lending - grew by £1.85bn or 1.3 per cent, to a total outstanding debt of £142.82bn in February.

DMA managing director Brendan Kiem is anxious that young people are stepping too far into debt.

"We're concerned that many young people will soon find it hard to repay the costs of both their secured and unsecured debts," he warns.

Simon Rubinsohn, UK economist at the fund management firm Gerrard, believes the fact young people are encouraged to take out student loans when they go to university means they have less fears about being in debt throughout their life.

"When I was at college, most people had grants," he says. "Some people got into debt, but it was very small beer. Things have changed a huge amount now. Students are much more acquainted with debt and more familiar with it. They're encouraged to borrow."

But it's not just young people who've become more familiar with debt.

"People have shown remarkable willingness to take on more and more debt in recent years," Mr Rubinsohn adds.

"In the past, there was a moralistic approach to taking on debt in the UK. We're becoming more like the US, where people feel free to borrow freely.

"The whole attitude to borrowing has changed. People feel more comfortable with being indebted."

There are practical reasons why British culture has shifted and become happier to take on debt.

"The cost of repaying debt is lower," Mr Rubinsohn says, "because interest rates have fallen.

"Interest payments on debt are 7.5 per cent of household disposable income. In 1990, that figure was 15 per cent.

"Paying back outstanding debt has become much cheaper. That means people feel they can take on more of it."

So, if people are getting into more and more debt, what are they spending their money on?

Mr Rubinsohn says the fact that high street sales have grown 7 per cent, year on year, shows some people are taking on debt to splash out on goods.

"People are spending a lot of money on the high street because prices have been kept quite low. They're also spending on property. But not all of that's buying a new home. A lot of it is work done to improve homes."

When interest rates do rise again, consumers are likely to have the good sense to tighten their belts, Mr Rubinsohn says.

"When people see interest rates going up, they'll be a little bit more circumspect, as their spending has been driven by low interest rates.

"But, as long as the economy's healthy, people are in jobs, and there's no sense of crisis, people will continue to borrow on their credit cards."

Brian Capon, spokesman for the British Bankers' Association, says problem debt usually occurs when someone experiences changing circumstances, like being made redundant.

But, he says, most people are borrowing what they can afford to repay.

"We're not seeing distressed borrowing. If you're saving for a holiday and your credit card company says don't repay anything this month, that's OK, provided you're fully aware of the interest payments.

"If you haven't got that sort of agreement and you skip payments, it can be dangerous.

"It's not in a lender's interest to lend money that can't be repaid. What you're left with at the end of the day is bad debt."

There's no doubt that, 50 years ago, people's attitudes to debt and spending was very different.

"Retail culture has changed. The sort of society we have now is a 'must have now' one. People want things and they want them straight away."