• Average level of unsecured debt for young people aged 21 and under is almost £9,000
• Debt level of 18 – 21 year olds in the UK 91% of their take home salary
• 37% of those with debt problems in the UK are 30 years old and under
Leading debt solution company, ClearDebt, releases figures showing the average 18 – 21 year old owes £8,195 in unsecured debts against their £8,987 take home salary. Despite earning less than any other age group, the younger generation of the nation are continuing to spend their way into debt whilst trying to maintain a lifestyle beyond their means.
The research is released as MoneySavingExpert and Mumsnet close their petition to government to re-instate plans to make financial education part of the curriculum.
Jacqueline Cohen, Marketing Manager of ClearDebt explains, “The data collated backs up the essential need to prepare children for financial independence – as they enter adulthood, they’re put into a situation where they’ll sink or swim – without the necessary education and understanding about how to manage finances, they’ll undoubtedly…sink.”
Showing support for the campaign by MoneySavingExpert and Mumsnet, ClearDebt wholeheartedly back up the argument for financial money management to be taught in schools. Jacqueline Cohen continues,
As Santander release figures confirming 773,000 10-15 year olds in the UK work part or full time, there has never been a more important time to teach children how important it is to manage their money effectively. The fact that at just 18, they have already worked up £15,000 of debt is heartbreaking – surely we can do better for them than that?”
The research by ClearDebt also shows that the highest average debt is currently attributed to those age 64, who owe £43,581; the highest ratio of debt/income (take home pay) peaks at age 66 when for every £1 they earn, people owe an average of £3.14 in credit card balances and unsecured loans.
The data analysed by ClearDebt indicates that no matter how old people are getting, they are still getting further and further into debt, making retirement feel difficult and dark. Supporting the need to teach the young before they get onto the debt ladder, these statistics could not be more relevant to the Financial Education Petition.
