Young Brits in £2,860 of debt
Wednesday, 27 September 2006 12:00
Some 2.4 million young Britons have credit card, loan, and overdraft debts averaging £2,860, new figures show.
Data from One Advice shows that millions of 18 to 24-year-olds are wracking up unsecured loans as they enter further education or their first jobs.
And the £2,860 is just the average figure.
Some 108,000 young Britons owe more than £5,000 on credit cards, while more than double this number have overdrafts of more than £1,000.
"Debt is a way of life and it is disturbing to find that so many young people who are just starting their working lives are doing so while weighed down by so much debt," said One Advice chief executive Chris Holmes.
"It is even more shocking to see 18 to 24-year-olds with credit card debts of more than £5,000. Many borrow the money without understanding the implications of the rate of interest charged.
"We are all aware of the debt problems students face while studying but this shows that it's not just those in further education who are going into the red regularly.
"To some extent young people have no choice but to go into debt as the costs of further education are spiralling and it makes sense to borrow.
"However building up substantial debts will limit their choice in life as they will struggle to borrow money to get on the housing ladder."
Average amount owed by 18 to 24-year-olds
- Credit cards - 28 per cent of young Brits owe £1,471 on average
- Money borrowed from family - 22 per cent of young Brits owe £621 on average
- Overdraft - 20 per cent of young Brits owe £1,532 on average
- Personal loan - 19 per cent of young Brits owe £4,404 on average
- Money borrowed from friends - 18 per cent of young Brits owe £125 on average
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