Payday loan and bank debt strangling youthful Brits finances – how to get help – Mirror Online

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Payday loan and bank debt strangling young Brits finances - how to get help - Mirror Online

Under 24s now carry more than £12,000 of debt around with them – and that’s even before they’ve had a chance to apply for a mortgage. Here’s where to get help

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  • 00:00, 24 SEP 2015
  • Updated 11:11, 24 SEP 2015
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Youthful people are being lumbered with “stifling” levels of debt, a report published today warns.

Citizens Advice says a borrowing “explosion” risks consigning a fresh generation to a life of money worries.

The number of youthful people aged 17 to 24 coming to the charity for help with debt issues rocketed by 21% to almost 103,000 in year to the end of June.

It comes amid growing fears about a household debt mountain – fuelled by rock bottom interest rates – which has ballooned to a record £1.4trillion.

Most is in mortgages but unsecured debt – including credit cards and overdrafts – has risen to £170billion, and is predicted to top £350bn by 2020.

Citizens Advice, in its report, warns youthfull people could be sitting on a debt timebomb.

Data displayed the average youthful person had amassed £12,215 of unsecured debt by 2012 – 200% more than before the financial crisis.

Youthful Brits face a debt mountain

Student loans accounted for almost half the increase, but there has also been a big rise in those taking on bank loans and payday loans in that time.

Meantime, the average loan from family and friends has soared from just £30 in 2008 to more than £1,000.

The report says the average debt to income ratio among youthfull people is almost 70% – meaning they owe £7 to every £Ten coming in.

That compares with a ratio of 34% among 25 to 29 year olds and 11% for 60 to 64-year-olds.

How much of £Ten is spent on repaying debts?

Gillian Dude, chief executive of Citizens Advice, said: “A fresh generation of youthfull people are beginning out with stifling levels of debt.

“Many youthful people already face challenges getting on the career and housing ladders – doing this while saddled with meaty unsecured debts make it an uphill fight.”

The report also exposed that council tax arrears have overtaken credit cards as the thickest debt issue.

Get help with your debt

If you are fighting to make finishes meet get free help instantaneously from your local Citizens Advice Bureau, call the National Debtline on 0808 808 4000 or Stepchange Debt Charity on 0800 138 1111.

Payday loan and bank debt strangling youthful Brits finances – how to get help – Mirror Online

Under 24s now carry more than £12,000 of debt around with them – and that’s even before they’ve had a chance to apply for a mortgage. Here’s where to get help

  • Share
  • Comments
  • 00:00, 24 SEP 2015
  • Updated 11:11, 24 SEP 2015
  • Share
  • Comments

Youthfull people are being lumbered with “stifling” levels of debt, a report published today warns.

Citizens Advice says a borrowing “explosion” risks consigning a fresh generation to a life of money worries.

The number of youthfull people aged 17 to 24 coming to the charity for help with debt issues rocketed by 21% to almost 103,000 in year to the end of June.

It comes amid growing fears about a household debt mountain – fuelled by rock bottom interest rates – which has ballooned to a record £1.4trillion.

Most is in mortgages but unsecured debt – including credit cards and overdrafts – has risen to £170billion, and is predicted to top £350bn by 2020.

Citizens Advice, in its report, warns youthfull people could be sitting on a debt timebomb.

Data displayed the average youthful person had amassed £12,215 of unsecured debt by 2012 – 200% more than before the financial crisis.

Youthful Brits face a debt mountain

Student loans accounted for almost half the increase, but there has also been a big rise in those taking on bank loans and payday loans in that time.

Meantime, the average loan from family and friends has soared from just £30 in 2008 to more than £1,000.

The report says the average debt to income ratio among youthfull people is almost 70% – meaning they owe £7 to every £Ten coming in.

That compares with a ratio of 34% among 25 to 29 year olds and 11% for 60 to 64-year-olds.

How much of £Ten is spent on repaying debts?

Gillian Boy, chief executive of Citizens Advice, said: “A fresh generation of youthful people are embarking out with stifling levels of debt.

“Many youthful people already face challenges getting on the career and housing ladders – doing this while saddled with big unsecured debts make it an uphill fight.”

The report also exposed that council tax arrears have overtaken credit cards as the fattest debt issue.

Get help with your debt

If you are fighting to make completes meet get free help instantaneously from your local Citizens Advice Bureau, call the National Debtline on 0808 808 4000 or Stepchange Debt Charity on 0800 138 1111.

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