Young People And Debt
In this latest in our series of article about UK people I focus on younger people, typically the 18-30 year olds. Recent figures now estimate that the average level of unsecured debt for this age group is almost ?8000. This is usually accumulated across credit cards, overdrafts and loans. However the picture may not be as bad as you would first assume, because student loans make up almost 50% of this debt. Students in the UK have now accepted that they will build up a level of debt as they progress through the final part of their education, but the concern I have is that many have no real awareness of how high these levels of debt are. A little sound advice on controlling the debt and options they have for repaying should be a pre-requisite before any credit is offered.
For Students though, financial difficulty was the reason that 34% of them quoted would make them consider dropping out of courses.
The average student debt on graduation is now thought to be over ?13,000.
Looking back over the past 4 years the rate of bankruptcy in this age group has grown from 7.9% to 18.7%.
The FSA (Financial Services Authority) recently commissioned a report into the area and found that of all 16-24 year olds, almost 30% said they wouldn?t know how to budget their weekly finances. Almost two-thirds of them wouldn?t know the organisations they could go to for help if they got into financial difficulties and only half of all 16 year olds had been taught how to manage money. Credit cards are just as much an issue for this age group as for any other, with almost 60% admitting that they go over budget when they use debit or credit cards.
Finally another figure from the Consumer Credit Counselling Service last year ? the level of debt is slightly higher for young males than females, but the females have the higher number of individual debts.
Marcus Brooks writes on a variety of personal finance subject areas for the UK Secured Loans provider http://www.securedloanuk.com
Related Articles:
Debt Consolidation Refinance Loans - A Great Way To Lower Your Bills
For millions of homeowners, refinancing is the perfect way to consolidate debts. You can consolidate your debts, eliminate outrageous interest rates and fees, and make one low monthly payment.
Debt Settlement
What is debt settlement?Debt Settlement is a process to settle your debts with the creditors. With debt settlement, a third party or you yourself negotiate with your creditors to come up with a reduced debt that you agree to pay.
Control Your Spending and Get Out of Debt
Are you like most consumers in America who have found themselves in debt Not only is the amount growing, but it seems as if there is no way to get out of debt
Debt - Control High Interest Costs
If utilized properly, credit can be useful You can obtain loans to help you purchase a new car or house, for example, since it is normally hard to find sufficient funds for either in a savings account
Is Debt Counseling The Solution?
Can debt counseling services offer a solution to your debt problems? To be able to answer this, we need to understand the debt counseling services and how they function. Well, debt counseling services are firms that are mostly sponsored by your creditors. Almost all of these service providers are non-profit organizations, though you may come across a few which function on their own. Having a source of income is an important condition for contacting a Debt counselor. The debt counselor will probably get in touch with the company you owe money and inform them that you are making an attempt to repay your loans. This counselor, after contacting the creditor, will try to achieve an agreement between you and the creditor. At the same time this co...
How To Analyze Your Debt And Credit Reports
Most consumers realize that there is a relationship between their debt and their credit reports. The truth is there are several relationships between a consumer's debt and his or her credit reports and ultimately the credit score that is calculated using the credit reports. Knowing more about how these issues relate to each other can be an important part in keeping credit scores high.
Why You Should Consider Student Debt Consolidation Loans
You're living in a small apartment, driving a used car, and working harder than you ever imagined possible. Despite all of your sacrifices, you're still struggling to meet your monthly payments for all of those student loans. The solution to regaining control is student debt consolidation loans.
Busby & Associates Dedicated to Educating Consumers on Their Rights in Debt Collection Cases
Leading Bankruptcy and Consumer Law Firm Warns Public About "Zombie" Debts