Many young people in Stone are being trapped by soaring levels of unsecured debts like store cards and payday loans, according to the citizens advice bureau that operates in the town.
Staffordshire South West Citizens Advice Bureau says it has helped 519 young people between the ages of 17 and 24 in Stone, Stafford, Cannock and Rugeley with debt in the past year. They presented bureau staff with £222,379 of ‘non-priority debts’, such as store cards, credit cards, payday loans and multimedia package debt (TV, internet and phones).
The charity is warning that an “explosion” of unsecured borrowing among young people risks trapping a new generation in problem debt.
[box type=”shadow” align=”aligncenter” ]Sue Nicholls, Chief Executive of Staffordshire South West Citizens Advice Bureau, said: “Debt can stand in the way of young people’s futures. Many young people in our area already face challenges trying to get on the career and housing ladders – debt can make this even harder. Often they find their debts are piling up as they can’t afford their living costs.[/box]
[box type=”shadow” align=”aligncenter” ]”If you are struggling, we offer free, impartial, expert money and debt advice to help you get your finances back on track. Please visit one of our offices in Stone, Stafford, Cannock, or Rugeley – alternatively you can call one of our advisers on 03444 111 444.”[/box]
The bureau runs advice sessions in Stone at the town council building in Station Road. Advice is also available online.
Gillian Guy, Chief Executive of national Citizens Advice, added: “A new generation of young people are starting out with stifling levels of debt. Our research shows that student loans account for less than half of the debt rise among young people so it is crucial we understand why so many are turning to other forms of unsecured borrowing. As well as looking for a longer term solution, it’s crucial people can get independent advice, guidance and support about how they can manage their finances.”
[box type=”info” align=”aligncenter” ]The consumer charity is making the warning in light of a new report, ‘Unsecured and Insecure?’, showing the number of debt issues young people have brought to Citizens Advice nationally has soared by more than a fifth in the last year. The report analyses official data which shows that nationally, young people have an average unsecured debt of £12,215 – more than three times what it was (£3,988) before the financial crash between 2006-08. Most of this debt is not student loans[/box]
