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The Growing Debt Problem For Under 25's In The Uk
By Debtsolver, Thu Dec 8th
Not at any time since the last major economic recession of the1990's have so many people in the UK suffered so much with debtproblems. Although the principal underlying economic factorslook good on the surface, a closer inspection of the statisticsreveals a structural debt problem in the UK, manifested by thetotal amount of personal debt exceeding the trillion pound markin July 2004. Previous cycles of economic decline have seen a combination ofhigh interest rates and unemployment; affecting mortgage holdersespecially. This time around, however, 18 to 25 year olds arereporting difficulties with repaying their credit card debts andother personal loans. According to the UK charity, the Consumer Credit CounsellingService (CCCS), there has been a rapid rise in the percentage of18
to 25 year olds reporting with debt liability problems,doubling from 6% to 13% since 2002. The CCCS reported that theaverage amount of money owed by under-25's who contacted themhas gone up from £ 12,000 to £ 15,000 in the last 2 years; anincrease of nearly 25%.
The CCCS argue that there is a generation growing up in the UK,who have been exposed to a combination of consumer pressure andeasy credit. The young have become "desensitised" to debt andare borrowing money to purchase non-essential items. Studentloans have meant that large bank overdrafts and credit limitshave become the norm for many young people. Also many of theyounger generation need to borrow large amounts to buy a home,for example, and usually have no savings or assets to fall backonto when they run into mortgage arrears. Indeed the CCCS are telling more young people to take bankruptcyas an option to solve their debt problems, many of thesegraduates, and still in their 20's. It's too soon to say whether the growth in the number of 18 to25 year olds facing debt problems is a real phenomena, or partof a general problem that is affecting the UK, but creditagencies are becoming increasingly concerned. About the author:Debtsolver is a UK company providing resources and informationon DebtManagement UK, Debt Consolidation UK, DebtProblems UK and IVA & DebtAdvice
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