The credit crunch may be in full swing but half of all under-25s say they are still devoted to shopping and spending, according to research from Bradford & Bingley.

While most of this generation won't have the burden of a mortgage to pay off just yet, their excessive spending could mean that they're forced to turn to a adverse credit debt consolidation remortgage when the time does come.

But for now some 15 per cent are buying now and thinking about the consequences later, with less than half managing to avoid overspending entirely.

"There are still a number [of Britons]  particularly among the under 25s, who are continuing to bury their heads in the sand and are not being deterred by the prospect of higher borrowing costs and a tougher credit environment," said Bradford & Bingley head of savings Paul Whitlock.

"It's crucial now that they start heeding the warnings as the credit crunch is likely to bite well into next year," Mr Whitlock added.

The report comes as Mintel has suggested that there will be a two to three per cent year-on-year increase in consumer spending this Christmas.

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