Call Us Free: 0800 088 2208
Follow Us:

Young Adults Could Face A Lifetime Of Debt

Big or small, every debt problem can be solved

debt crisis in the UK

Young Adults Could Face A Lifetime Of Debt

More and more 17-24 year olds are being forced to turn to bank and payday loans as well as borrowing from friends and family.

Today’s 17-24 year olds are facing becoming a generation mired in debt problems. The charity Citizens Advice warns that unsecured borrowing has exploded among young people and is leaving many trapped in a disastrous debt spiral.

The number of debt issues that forced young people to turn to the charity for help has soared by more than a fifth in the last year to 102,296.

Official data shows that young people now have an average unsecured debt of £12,215. This is triple the amount before the financial crash, when it stood at £3,988 in 2006.

The majority of the increase in unsecured debt is in the form of loans from bank and payday loan lenders, with the average amount borrowed increasing from £969 to £4,577. Loans obtained from friends and family have also increased from an average of £30 to more than £1000.

Most worrying is the fact that 17-24 year olds have an average debt to income ratio of nearly 70 per cent, which means they are close to becoming swamped in debt. The ratio is twice as much as that of 25-29 year olds at 34 per cent and almost seven times 60-64 year olds at 11 per cent.

Joanna Elson, chief executive of the Money Advice Trust, the charity that runs National Debtline, warned that there’s a risk that debt becomes the norm for young people.

“The more young people borrow as they set out in adult life, the harder it will be to start saving for the future and afford the homes and lifestyles that they aspire to,” she said. “We need to do more as a society to give all young people the skills and knowledge to manage their money well, and to know where to turn for free advice when they need it.”

Tips for young people dealing with debt

  • Work out a basic budget, including rent, gas, electricity, travel and food
  • Prioritise the most important bills. The consequences for not paying some debts, like rent or council tax, can be much more serious than for others, so paying these first is important. Once you have done that, you can look at your budget and work out how much can go towards other debts
  • Make the most of the offers available to young people. Under 25s can often get discounts on travel and you may not have to pay council tax if you are in full-time education or on an apprenticeship.

How we can help.

Our panel of specialists can quickly advise you if you're struggling with debts. Simply call the team on 0800 088 2208. Alternatively take the online debt test and find your best solution.


no credit on prepayment meter

What to do if your prepayment meter has run out of credit

  • by Admin
  • June 23, 2015

This guide explains what you should do if your pre-payment meter for gas or electricity runs out of credit....

Read


phillips cohen associates

How to deal with a Debt Collection Letter from Phillips & Cohen Associates

  • by Admin
  • June 22, 2015

Have you received a letter from Phillips & Cohen Associates. In this guide we'll show you a common letter they send, the tactics they use and how to deal with...

Read


attachment of earnings

A Guide To An Attachment of Earnings Order

  • by Admin
  • June 23, 2015

Have you received a letter threatening an attachment of earnings. In this guide we explore what an attachment of earnings order is, how they work and how to defend...

Read

Connect With Us

Find Out What Debt Help Is Available?


Latest Tweets

Latest testimonial

Fantastic,they are life savers.

I Contacted them at 5 pm on a Thursday night,they arranged a meeting Friday morning with all the relevant bodies their because my case was the following Monday .I can't sing their praises high enough they contacted the courts same afternoon. Fantastic response, I avoided bankruptcy on the Monday and was given time to arrange an Iva. I risked losing my home,my mother and fathers home all hope seemed lost until I made that fateful phone call. I can now sleep at night.

Darren

Join 100,000s of Money Advice Onliners who read our WEEKLY email. Get our round up of ALL the best money saving tips, best buys, discount vouchers and competitions. Don't miss out!

* indicates required

We hereby promise to be responsible emailers.

Contact Us
  • Address: 20-22 WENLOCK ROAD LONDON ENGLAND N1 7GU
  • Phone: 0800 088 2208
  • Email: [email protected]
  • Monday - Friday: 8:00 am - 9:00 pm
    Saturday - Sunday: 10:00 am - 4:00 pm
Say Hello
Made with in Manchester
© 2015 Money Advice Online Ltd company no. 09554412 (Registered in England and Wales). ICO registration no. ZA116663 All right reserved.

Money Advice Online are a comparison service that acts as an introducer to companies who offer regulated financial advice (FCA approved). Money Advice Online does not provide any advice and we are not liable for any financial advice provided by, or obtained through a third party. As with any investment, the value of investments can fall as well as rise and maybe worth less than what was paid in. Past performance is not an indicator of future results. Money Advice Online does not provide any regulated debt activates in relation to debt counselling or adjusting. You can also get free impartial debt advice by following this link to the Money Advice Service.