Debt Issues Leaving Young Brits Facing Uphill Struggles
May 18, 2016
The scope of financial problems with which young Brits are finding themselves saddled continues to grow and unsecured debt is a key part of the picture.
That’s according to the charity group Citizens Advice, whose figures shed light on just how difficult it can be for young people throughout the country to deal with debt and reach a healthy financial balance in their lives.
Young people in various parts of the UK are increasingly being obliged to take on large loans to cover their university fees but this is only one of the financial obstacles they face, according to Citizens Advice.
The charity group has highlighted figures that show debt to income ratios are at their most unfavourable among young adults nationwide and that these ratios remain worryingly unbalanced for many thousands of Brits in the 20s and 30s.
“A new generation of young people are starting out with stifling levels of debt,” said Gillian Guy, chief executive of Citizens Advice.
“Our research shows that student loans account for less than half of the debt rise amongst young people so it is crucial we understand why so many are turning to other forms of unsecured borrowing.”
Guy went on to point out that most young people in the UK already find it difficult to make their way onto the housing ladder but those who have high levels of unsecured debt will often find this step beyond them entirely.
“As well as looking for longer term solutions, it’s important people can get independent advice, guidance and support about how they can manage their finances,” she said.
In recent months, researchers from Citizens Advice have repeatedly noted that more and more of the people it helps deal with debt problems are experiencing issues in relation to council tax arrears and debts owed to local authorities.
Meanwhile, a recent report from the Association of Chartered Certified Accountants (ACCA) suggested that students, along with low-earners and self-employed people, are among the demographics most likely to suffer “over-indebtedness” in the UK.
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