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55,000 youngsters struggling with debt 18 April 2011

According to the study there are nearly one million unemployed 16 to 24 year-olds and research conducted over three years shows 5.5 per cent of them now have unmanageable debt levels.

Joanna Elson, chief executive of the Money Advice Trust, said: “This is a desperately sad situation for so many young people to face. Dealing with debt can be a distressing experience which impacts right across our lives.”

Money Advice Trust is urging young people concerned about debt to seek free financial advice from organisations such as National Debtline and Citizens Advice, to help get their finances in order.

There is particular concern over those using credit to pay for bills and household expenses.

This has become a particularly acute problem due to the high rates of inflation the UK has seen in recent years.

Elson said: “Today’s figures show how families right across the country are facing the effects of a weak economy. Wage growth over the last 12 months has been just over two per cent, far below the current four per cent level of inflation – meaning the cost of living is rising faster than how much we earn.”

She added: “We have concerns about people borrowing money to fill this gap. 

 

 

 

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