Given that debt is a massive problem in the United Kingdom, it won’t be a surprise to learn that many young people are experiencing major issues with finances. Over one third of youngsters have debts of close to £3,000 and a significant number of youngsters have stated that they are concerned amount money.
These findings have come to light after a survey was carried out for YouGov by the Money Advice Trust. The organisation spoke to over 2,000 people that are aged between 18 and 24 years old. A number of issues were detailed in the report and it seems that many youngsters are borrowing from family members, are obtaining loans, are using an overdraft and have credit card debt.
With more than 50% of respondents saying that they worried about money on a regular basis and 32% of respondents saying that debts were a “heavy burden”, there is no getting away from the fact that the youth of today have many worries about debt.
UK Debt Levels are High for Youngsters
The average level of debt in the UK for youngsters is £2,989 which excludes mortgages and student loans. However, the average balance for student loans stands at £25,505. The current situation could see the youth of today facing a very difficult future and there is a need to acknowledge the problems that debt can cause.
One issue for many people is that they may not know where to turn to for support when it comes to dealing with finances. There are places where people can turn to for support and guidance, and there is a need to make sure that all UK citizens are fully aware of what support is available for them. Opening up about debt is difficult and many people are embarrassed at the financial situation they have found themselves in.
However, there is no way to improve finances by hoping things will magically improve. This means that there is a need for people in debt, including young people, are proactive in dealing with debt.
Some of the changes that financial experts are calling for in order to aid the youth of the UK improve their financial situation include:
- A higher standard of financial education to be delivered to youngsters
- Stronger support for people borrowing for the first time
- Stronger support for people borrowing on a credit card or store card
- A need for employers to provide guidance and support to their young professionals with respect to dealing with finances
- A reform to payments of student loans and student finance
The fact that there is a recognition of the difficulties faced by many youngsters should be seen as a positive step. However, there is a lot more than needs to be done, and there is also a need for youngsters to take responsibility for their own actions. Getting into debt may not seem like a major problem when someone is young but if left unchecked, it can ruin a person’s life. This is why there is a need to minimise the issue of debt as quickly as possible.
Young People need to be proactive when it comes to dealing with Debt
There are some tips that are recommended for people under the age of 25 when it comes to dealing with debt, but these tips can be followed by people of all ages.
- Create a budget and know how much money you bring in and spend
- Try and bring more money in
- Try and spend less
- Always check terms and conditions for contracts
- Review banks and any credit arrangements before you sign up with them
- Try and develop a savings plan
- Plan your expenses and think about the future
- Tread carefully when it comes to student finances
- Seek assistance from experts and professionals
- Only borrow if you can afford to pay money back
These are tips that everyone can benefit from when it comes to dealing with debt in an effective manner. While these tips may make dealing with debt seem like a simple issue, there is a lot to be said for staying on top of your finances and following through with good intentions. It can be very easy to slip into debt but it can be extremely difficult to get out of debt. Knowing what you can to minimise your financial problems and improve your chances of moving out of debt will help you to lead a happier and healthier life.
Andrew Reilly is a freelance writer with a focus on news stories and consumer interest articles. He has been writing professionally for 9 years but has been writing for as long as he can care to remember. When Andrew isn’t sat behind a laptop or researching a story, he will be found watching a gig or a game of football.