One out of every four Brits taking out debt relief orders are between the ages of 25 and 34, according to new information from the Insolvency Service.
With traditional lenders restricting access to credit – something that has led to a surge of people relying on instant short term loans to make ends meet – and the bleak financial landscape putting a strain on nearly everyone in the UK, more and more have had to turn to insolvency to manage their debt. As a result of the new figures, the Insolvency Service has launched their new ‘Dealing With Your Debt’ campaign in an attempt to lend encouragement to Brits to seek help before things get out of control, with the service adding that high-interest instant cash loans may not be the best way to deal with financial problems.
Gareth Price, a Consumer Focus Wales spokesperson, said that high youth unemployment levels and record student debts are driving the growth in DROs for the younger generation. It’s no wonder younger Brits are finding it difficult to make ends meet if those who have managed to find work are not being rewarded with the pay levels needed to pay their debts, leading them to rely on payday advance services too often, and CFW found that nearly 30 per cent of Brits aged 18 to 34 in Wales had fallen behind with credit or bills in August of 2010.
Money Advice Trust chief executive, Joanna Elson, said that the charity has found that many in the younger generation have had their expectations of climbing the financial ladder dashed due to the economy. These younger Brits, had they been alive during their parents’ generation, would have most likely already been saving for the future, have lined up a comfortable pension, and bought their first home, if the economic realities of a quarter-century ago were still those of today.