'Inbetweeners' are facing debt problems

A large number of 'Inbetweeners', those aged between 18 and 19, are entering adulthood with serious debts, it has been claimed.

Leading debt charity Consumer Credit Counselling Service CCCS said that many young people are becoming reliant on credit cards and loans, including payday loans, with those approaching the charity holding unsecured debt averaging £2,254.

The average overdraft debt was £671, personal loan debt was £2,610, and for those who had credit card debt, the average outstanding balance was £898.

A tenth of 18 to 19-year olds with money problems claimed that lack of budgeting was the main cause of their debt.

"While financial education is not a silver bullet, it is essential that we give young people the tools to be able to make informed decisions about their finances - both to help them avoid falling into debt, and to help them out of it if they do," said the charity's director of external affairs Delroy Corinaldi.

These comments were echoed by AXA which said that the under-50s have become cavalier about debt.

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2011-09-06 16:58:45 © Moneyextra.com