In the UK it appears that year after year the number of young adults leaving college and university and entering the world of employment are facing debts that they must repay for extremely long periods of time sometimes even stretching until their very final pay check. A charity has commented that more and more young adults are facing high levels of debts after borrowing from banks, pay-day lenders, and family members.
A survey quoted that people aged 17 to 24 had over 100,000 debt issues in just 2014, which is over 20% above the value in 2013. This rapid increase in this value indicates how every year more and more are becoming crippled by debt. It is suggested that this may have been caused by the increasing numbers of students taking formal loans in addition to their student loans hence creating more problems.
Every generation in UK seems to be starting their adult lives with new, higher levels of debt. With the cost of tuition fees at a high of £9000, it has become a choice between a university degree along with debts or lesser qualifications but no monetary commitments.
It comes to situations where some students are forced to make do with the bare minimum, such as: having 'to use candles as lights,' simply because with other living it becomes basically impossible.
Due to these high levels of debt that these young adults find themselves in they are often forced to take out loans with pay-day lenders. This often results in very high interest rates and therefore, students struggle to repay this as well on top of the debts they already have.
For more information:
http://www.bbc.co.uk/news/business-34346698
For debt management skills:
http://www.publications.parliament.uk/pa/cm201012/cmselect/cmbis/1649/1649.pdf
A survey quoted that people aged 17 to 24 had over 100,000 debt issues in just 2014, which is over 20% above the value in 2013. This rapid increase in this value indicates how every year more and more are becoming crippled by debt. It is suggested that this may have been caused by the increasing numbers of students taking formal loans in addition to their student loans hence creating more problems.Every generation in UK seems to be starting their adult lives with new, higher levels of debt. With the cost of tuition fees at a high of £9000, it has become a choice between a university degree along with debts or lesser qualifications but no monetary commitments.
It comes to situations where some students are forced to make do with the bare minimum, such as: having 'to use candles as lights,' simply because with other living it becomes basically impossible.
Due to these high levels of debt that these young adults find themselves in they are often forced to take out loans with pay-day lenders. This often results in very high interest rates and therefore, students struggle to repay this as well on top of the debts they already have.
For more information:
http://www.bbc.co.uk/news/business-34346698
For debt management skills:
http://www.publications.parliament.uk/pa/cm201012/cmselect/cmbis/1649/1649.pdf
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