Debt Problems Affecting 55,000 Young Brits

Wed, 04 May 2011

A leading debt charity has revealed that the number of young and unemployed Britons struggling with debt-related problems now stands at 55,000.

New figures released by the Money Advice Trust show that 5.5 per cent of the near-one million 16 to 24 year-olds who are estimated to be unemployed have unmanageable levels of debt .

"This is a desperately sad situation for so many young people to face. Dealing with debt can be a distressing experience which impacts right across our lives," said Joanna Elson, chief executive of the Money Advice Trust.

"Today’s figures show how families right across the country are facing the effects of a weak economy," she added.

"Wage growth over the last 12 months has been just over two per cent, far below the current four per cent level of inflation – meaning the cost of living is rising faster than how much we earn. We have concerns about people borrowing money to fill this gap."

James Falla, personal debt expert at online debt portal Wilmott-turner.co.uk, said people who get into debt problems at such a young age are likely to be affected for "many years to come".

"The implications are years with poor credit ratings and problems with getting onto the housing ladder," he explained.

The Money Advice Trust is urging young people with debt concerns to seek free expert advice from organisations such as Citizens Advice and National Debtline to help get their finances under control.
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