UK youth suffering from ‘endemic’ debt
Disadvantaged young people are suffering under endemic levels of debt, a report has found.
Rainer, a national charity for under-supported young people, found nearly half of those aged 18 to 24 it surveyed owed over £2,000 and one in five owed over £10,000.
Its report concludes poverty and a lack of financial skills are the two main causes of debt among young people.
“Interviews with our young people showed that more than a third of them are left with less than £5 a week after debt repayments, bills and living costs and one in five are left with nothing at all,” Rainer chief executive Joyce Moseley said.
“One unexpected expense can see their debts spiralling out of control and this has a devastating impact on their lives.”
Rainer is calling on the government to cut the availability and marketing of store cards, increase information available to young people about the full costs of debt and shake up the benefits system so housing benefit can be claimed more easily for those studying for GCSEs and A-Levels.
Research by mental health charity Mind also shows debt is a major influence in mental health problems – with 91 per cent of those with debts saying their mental health deteriorates.
The Rainer report also found the spread of student loans had helped to normalise debt among young people and give them a relaxed attitude to debt.
However, store cards and credit from retailers was also high among young people – taken in by initial offers but finding high long-term costs.
