Personal Debts are a ‘Heavy Burden’ for a Third of Young Adults
September 7, 2016
Personal debts are a “heavy burden” for 32 per cent of 18 to 24 year olds around the UK, according to recent research.
A study carried out on behalf of the Money Advice Trust has found that credit card arrears and other forms of personal debt are a source of real concern for many thousands of young adults throughout the country.
The research was commissioned after figures showed that while under-25s account for 21 per cent of the UK’s over-indebted population, they only make up 12 per cent of callers to the National Debtline.
According to the latest numbers, a majority (51 per cent) of young adults worry about money on a regular basis and just over a fifth (21 per cent) sometimes find themselves unable to sleep because financial concerns are playing on their minds.
Notably, women in the under-25s age bracket were considerably more likely to worry about money and to lose sleep over financial issues than their male counterparts.
It was also found that roughly 10 per cent of the UK’s young adults have fallen behind with important financial commitments over the past year, with 7 per cent having missed either a rent or mortgage payment during that time.
A key concern for the Money Advice Trust in light of its own findings is that so few young men and women are reaching out for advice and expert guidance in dealing with their finances and debt management issues they may be struggling with.
Research suggests that 63 per cent of 18 to 24-year-olds have asked a parent for advice on financial matters but only 2 per cent have ever sought guidance from professionals in the field.
“With many young people beginning to build up debts soon after they turn 18, we face a real challenge as a society to make sure they receive the support they need to manage their money well,” wrote the Money Advice Trust’s chief executive Joanna Elson in a foreword to her organisation’s report entitled ‘Borrowed Years’.
“Crucially, we know that far too few young people are seeking the free advice they need when they fall into financial difficulty,” she wrote.
“If we let this situation continue, there is a real risk that young debts will become old debts, with the financial prospects and life chances of young adults being negatively affected as a result.”
If you live in Scotland and are struggling to cope with your personal debts then Scotland Debt Solutions can help. Call one of our experts directly to arrange a free and confidential consultation.
When taking out a joint loan, there are many things you need to consider. Signing up to a joint credit agreement is a huge commitment and it’s important to ensure you have all the facts before signing on the dotted line. While no one wants to think about a relationship breaking down, the truth is […]
If you’re looking to save some money it’s a good idea to make a detailed budget that lets you see where your cash is currently being spent, and offers an overall view of your finances. You’ll need to collect together your income and expenditure details, including annual costs such as insurance, car expenses, birthdays and […]
A trust deed is a common debt repayment programme based around a voluntary arrangement made between you, your creditors and a qualified independent trustee who takes control of your debt repayments for a typical period of four years. If you’re having difficulty paying your debts and have assets or a regular income, you may qualify […]
If you have built up debt from gambling, you may be able to write off part or all of the debt via a formal Scottish insolvency route. Not all insolvency solutions allow debts to be written off, but you may be eligible for a trust deed if you meet certain criteria, with sequestration also being a possibility […]
Her Majesty’s Revenues and Customs (HMRC) is one of the biggest creditors in Scotland, and indeed across the rest of the UK. Millions of people make payments to the government through HMRC in the form of income taxes, National Insurance and VAT every year. For the majority of people in employment, this is done automatically […]
Council tax is a charge levied on residential property and payable to the local council. While some properties are exempt from paying council tax, most households must factor this bill into their monthly budget. Households will be given a yearly charge which can then be broken down into a series of monthly instalments throughout the […]