Debt problems of the young ‘on the rise’

New data has revealed a rise of over a fifth in the number of young people needing help with debt.

Figures from Citizens Advice have shown the tall…

New data has revealed a rise of over a fifth in the number of young people needing help with debt.

Figures from Citizens Advice have shown the tally of people aged less than 25 seeking advice and assistance from the charity in the 12 months between April 2009 and May 2010 was 729,825 – a 21 per cent increase on the previous 12 months.

The most common enquiry was about personal loan repayments, which accounted for 30,646 cases, while 26,828 were about credit or store cards and 25,472 concerned overdrafts.

Issues such as housing benefits, unpaid phone and broadband bills and private rental costs were also prominent issues.

The rest of the top ten list was made up of debt enquiries associated with jobseekers allowance, working and child tax credits, pay and entitlements and dismissals from employment, showing a broad range of issues have been causing debt worries.

Commenting on the situation, chief executive of Citizens Advice Gillian Guy said: “It can be scary and daunting to seek advice if you have a problem – but more often than not, the sooner you tackle it, the easier it is to put right.”

Such advice may also be given to people of all ages, as the comparative figures from the body show the under-25s have seen a smaller rise in debt problems than the adult population as a whole.

Data for the same period revealed there were 2.4 million queries about debt overall, a 23.4 per cent rise on a year before, more than double the 11 per cent rise seen in 2008-09.

Research released by ClearDebt earlier on this year showed the average level of unsecured debt for young people aged 21 and under was just under £9,000.

By Amy White

ADNFCR-622-ID-800236843-ADNFCR

Tell others:

shortlink