Young people 'are struggling with debt'
Published On 8 October 2007
The vast majority of young people have been in debt before they reach the age of 21, a new report has warned.Charity Rainer found that 77 per cent of young people had been in some debt before they were 21 and that a third of the UK's youth had amassed debts of more than £5,000 by this point in their life.
A worrying one in five said that they owed more than £10,000 already.
While 49 per cent said that things like student loans were responsible for their debt, 38 per cent had dipped into their overdraft and 32 per cent said that they had used credit cards to run up debts.
The study also found that one in five young people are left with just £50 a month for food and other expenses after they have serviced the interest on their debt.
"Young people tell us that being in debt is now just part of the norm, but it can quickly become a millstone around their neck," explained Rainer chief executive Joyce Moseley.
"In addition to the stress it can cause, there is strong evidence that debt can prevent young people from living independently or taking part in education or even eating healthily."
Figures from Credit Action indicate that total consumer debt in the country researched £1.363 trillion in August.
