Debt Young People in Wales a ticking time bomb
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Posted On :
Aug-13-2010
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Article Word Count :
719
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According to a consumer watchdog, young adults in Wales are struggling with more debt than anyone else in the U.K, creating a "ticking time bomb". Nearly 1/3 of 18 to 34-year-olds (around 180,000) have defaulted on credit card payments or are behind with their utility bills, said Consumer Focus Wales.
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According to a consumer watchdog, young adults in Wales are struggling with more debt than anyone else in the U.K, creating a "ticking time bomb".
Nearly 1/3 of 18 to 34-year-olds (around 180,000) have defaulted on credit card payments or are behind with their utility bills, said Consumer Focus Wales.
The main cause of these debt management planning difficulties for young people in Wales was a low income or recent redundancy.
This is proof that stricter controls on irresponsible lending are needed to avoid a further downward spiral into more debt.
According to this new research by Consumer Focus Wales, 420,000 people in Wales - 18% of the adult population - had fallen into debt that they are struggling to repay.
The watchdog said that for many individuals, borrowing money was more of a "necessity than a lifestyle choice", with around a 1/5 of the 1000 people surveyed turning to credit cards and loans to help pay for everyday expenses like food and clothing. In addition to this, 13% were using credit cards to pay for utility bills.
Lindsey Kearton, senior policy advocate at Consumer Focus Wales, stated: "Our research shows there may be a "ticking time bomb" in terms of people's ability to cope financially over the coming months,"
Financial worries for young mums
A number of young mothers who attend the Cwmafan branch of YWCA - a charity for disadvantaged women – were polled about their views on financial matters and asked how they are finding the credit crunch.
All of the women interviewed said that they worry about their financial circumstances and felt that their disposable income was reducing year by year.
None of the women questioned felt that they would be better off financially before 2012.
They also expressed concern that young people do not get enough information about money management skills that would help them to deal with personal financial matters and debt management issues in later life.
The women also wished they had been given information and advice in school about the cost of living and what bills they would be responsible for when they reached adulthood.
One lady said: "'I don't think we realise how much things are until thrown in at the deep end. There are already signs that consumers might be overstretching themselves."
She also added that financial cutbacks in the future were worrying and that government officials would need to ensure they are managed properly to avoid the situation becoming progressively worse.
"Bringing in tighter controls on rogue and irresponsible lending will also help long-term," she added.
YWCA stated that it had noticed a rise in financial worries within the disadvantaged women it helped, many of whom are struggling to find employment due to the lack of jobs available during this recession.
"Because of the nature of what we do, working with women and girls who are disadvantaged, we often give advice and support on money issues and debt," said Linda Pritchard, policy officer for YWCA.
"But I do think it's getting worse. In particular, there's a worry that a difficulty in getting credit could mean more people go to illegal money lenders."
She added that the charity helps young girls and women form poorer backgrounds to gain the necessary skills and qualifications to find permanent employment and secure a future for themselves and their children.
"But of course, in the the current financial climate, there are few jobs around, which can leave the girls even more disillusioned," she added.
In Conclusion
Although the current economic climate can prove difficult for many young people at the moment, there is help available.
If possible, avoid taking out personal loans and credit cards that you cannot afford to pay back. If you have existing credit, you can address the situation by looking into a debt management plan to help you manage your debts with one easy monthly payment instead of paying each creditor separately.
You can get the interest and charges stopped on your credit cards with a debt management plan, meaning you are paying off the capital debt that you owe. This will ensure your balance will come down, thus, taking the weight off your shoulders.
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Article Source :
http://www.articleseen.com/Article_Debt Young People in Wales a ticking time bomb_29196.aspx
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Author Resource :
For more information about debt management please contact our friendly team on 0800 083 2827. Alternatively, you can view information at sterlinggreen.co.uk and fill out a call back form so one of our advisers can call you back at a time that is convenient for you.
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Keywords :
debt management, debt consolidation, debt settlement ,
Category :
Finance
:
Finance
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