It’s extremely easy to assume that people who are dealing with debt are all individuals who have had years of borrowing behind them, especially if you have never been in debt yourself.
Generally, people assume that debt is an “older person” problem, and not necessarily something that you would see young people having to deal with.
Young People Are Affected Too
In the last year, the amount of 17 to 24 year olds asking for help with their debt has risen by a shocking 21% since 2014. Around 102,296 debt issues were brought forward by this age group, showing that debt is becoming an increasingly prominent issue in the younger generations.
Citizens Advice has stated that more young people are turning to bank and payday loans to be able to live. The chief executive of the charity has commented that “Many young people already face challenges getting on the career and housing ladders – doing this while saddled with huge unsecured debts make it an uphill struggle.”
With house prices rising and the cost of living increasing too, it’s no wonder that many young people are turning to borrowing money just to be able to live their lives comfortably.
Are Your People Borrowing More Than They Can Afford?
Citizens Advice analysed data, covering the years up to 2012, which detailed the debts which young people are facing in today’s society.
The results of their analysis found that 45% of the rise which had been seen was attributed to student loans and that that the average debt from payday and bank loans amongst the 17-24 age group was £969 to £4,577 between 2006 and 2012.
It also discovered that the amount of money that young people were borrowing from family and friends had risen dramatically from £30 to a huge £1,000 within the same 2006-2012 period.
Overall, it was reported that young people had unsecured debts which amounted up to £12,215 in the year of 2012 – over three times the amount that was owed by the same age group before the financial crisis hit.
The amount of debt is said to be the equivalent of around 70% of a young person’s income and contrasted against the 34% for 25-29 year olds and an even lower 11% for 60-64 year olds. It’s not difficult to see why we are seeing more young people are struggling with crippling debt.
That’s where our expertise comes in. We have years of experience in debt management services which help people who are battling with their debt to be able to live their life while not needing to worry about their repayments.
For more information on how we can help you, don’t hesitate to contact our dedicated team on 0800 011 2322 and we will be more than happy to discuss your situation with you.