Over 100,000 young people requested debt help

The number of adults under the age of 25 that are seeking free advice on paying down their debts has now exceeded over 100,000, which is over a 20% increase from 2014. The individuals are going to many different organisations for this support, including Citizens Advice as well as local churches that are part of CAP.

Young people are turning to all types of lenders for this borrowing. There are more people borrowing from banks, credit card companies, student loan companies, and even payday lenders. This is created a younger generation of individuals across the UK that are starting off their life being in tremendous debt.

The amount of borrowing being taken on by these adults is hard to believe. The study from Citizens Advice shows that their debt levels are now almost three quarters of the young person’s total income. That level is no sustainable. This means that if the wages being earned are £20,000, then the young adult has about £15,000 in all types of debts due to creditors.

Other bank loans are also increasing. This total now stands at over £4,500 for each young person, and includes the payday loan category and other formal loans. This too is another grave challenge.

To make matters ever worse, the amount of unsecured debt has increased more than 300% since 2008. This total now stands at about £12,215 per individual. This is the type of borrowing that tends to be not even needed and includes expenses such as credit card bill or car loans.

Many experts are very concerned. National Debtline as well as Citizens Advice are strongly concerned what this will do to the future generations of young adults. If they continue to borrow money at those levels then it will often lead to a bankruptcy in their not so distant future. Even if they stop borrowing, and increase their income to start to pay down these debts over time, it will take the youth many years to get back on track with their lifestyle.

Solutions for young people

The good news is that with the over 100,000 requests for help, young adults are seeking assistance. They are not turning away from this issue. There are some steps they can take.

Many charities, including Christian Against Poverty churches as well as Citizens Advice offer advice. They will meet with the client to better understand their debt levels and agree on steps to take. A full assessment of their finances will take place. Another charity known as National Debtline also takes a leading role.

There are specialists from churches in many towns that provide help as well. These locations tend to be easy for a young person to drop in at as there is no judgment at all. The only focus is to help them get out of debt by solutions such as freezes on interest rates and payment plans. Find more information on debt assistance schemes from churches.

A key is just to show the young person how to live withing their means by budgeting their income. This and more can easily be done for those 100,000 plus that are seeking advice.