Debt charities have recently reported a significant jump in the number of young people (under 30’s) seeking help with bad debts. It reports a growing number of this cohort is struggling to pay household bills, interest on bank overdrafts and rent arrears.
Citizens Advice states there was a 34% rise in the number of under 25s seeking help with debts and high cost credit in the last 2 years. Similarly, StepChange, another charity that helps people with debt problems stated that in the first 6 months of 2017 64% of all clients who sought debt advice were under 40. In 2013 this figure was only 53%.
The trend seems to be for younger people seeking debt advice. StepChange reports the average age of clients has now been lowered to 41. Alongside this is another change. Fewer homeowners are seeking help with their debt problems, with an increase in the number of renters looking for debt advice and support.
It may be significant that the Resolution Foundation recently found that, in the generation currently aged 18 to 36, they are typically spending over a third of their post tax income on rent or about 12% on mortgages. This compares with 5-10% of income spent by their grandparents in the 1960’s and 70’s on housing costs.
Citizens Advice has stated that people under 35 are much more likely to have high cost credit issues (pay day loans) than those over 35, who tend to have more mainstream debts from credit cards and loans. The charity goes on to state that “In the past 12 months 43% of people who sought help for debt resulting from high cost credit issues were under 35. In comparison, only 25% of people who sought help for debt relating to mainstream consumer issues were under 35”.
If you are seeking debt advice, speak to Farleys’ specialist solicitors today on 0845 287 0939 or complete our online enquiry form. Our solicitors can provide comprehensive advice and support to ensure you don’t face your debt worries alone.