Concern About Teenager Debts

A leading debt charity is concerned about the large number of 18 and 19 years olds who are starting out on life with serious debts.

The Consumer Credit Counselling Service (CCCS) has experienced a surge in the number of 18 and 19 years olds seeking advice on how to deal with their debts.

A total of 753 young people aged 18 and 19 contacted CCCS in 2010 with an average of £2,254 in unsecured debts.

Those with personal loans had racked up an average of £2,610 of debts whereas those with borrowings against their credit cards owed £898 on average.

Responding to these figures, Delroy Corinaldi, the CCCS director of external affairs said “These figures show how quickly young people can fall into debt in the first few years of adult life.”

The CCCS is blaming the lack of budgeting for the teenagers debt problems and cites a greater need for better financial education and knowledge about how to make and stick to a budget.

“While financial education is not a silver bullet, it is essential that we give young people the tools to be able to make informed decisions about their finances – both to help them avoid falling into debt, and to help them out of it if they do.” Delroy Corinaldi added.

With its ethos of offering free advice to the “can’t pays” and not the “”won’t pays”, the CCCS aims to help its clients pay back what they owe, in a realistic timescale and manner that is suited to each individual’s situation. It is also well placed to offer free advice to teenagers struggling with mounting debts.

MoneyHighStreet.com Comments: With the costs of university rising, the young adults who aspire to a university education are very likely to incur large student debts. Starting life at university with existing debts that need to be repaid will make student life even more challenging.

It is good that debt charities such as the CCCS are there to free offer non judgemental advice to young people and those youngsters with mounting debts should approach them for help.