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I changed drugs for learning and achieved qualifications beyond my wildest dreams and now the world is my oyster.
Rainer young person
80 per cent of young people in debt by 21
8 October 2007
Almost four out of five (77 per cent) young people have been in debt according to a draft report from youth charity Rainer and YouGov. A third of young people had owed more than £5,000 and one in five had owed more than £10,000.
The research shows that these debts are not confined to student loans. Young people from across the spectrum are affected, with credit cards (32%) and overdrafts (38%) heavily used, alongside loans (49%). For young people reliant on benefits, long delays and the complexities of the system were a major cause of debt.
These debts are leading to crisis point for one in five young people who, after paying bills and debt repayments, are left £50 a month or less to cover food and other expenses. One in ten young people are left with nothing.
It is those young people who are vulnerable in other areas of their lives who are hit the hardest. Eighty five per cent of homeless young people are in debt and Rainer's research showed that the young people it supported are left with an average of just five pounds per week.
Rainer Chief Executive Joyce Moseley said:
"Young people tell us that being in debt is now just part of the norm, but it can quickly become a millstone around their neck. In addition to the stress it can cause, there is strong evidence that debt can prevent young people from living independently or taking part in education or even eating healthily."
Rainer is calling for jargon-free practical financial advice to be available to all young people, with particular support targeted at vulnerable groups such as homeless young people or care leavers. The charity is also calling for reform of the benefit system to remove delays and provide better advice to those who are in financial trouble.
Ends
Notes to editors
1. The survey was carried out in September 2007 with a sample size of 4,222, representative of the UK population.
2. Rainer is the national charity for under-supported young people. We have contact with more than 18,000 young people and young adults in 115 communities across the country - including those who are at risk of family breakdown, in or leaving care, caught up in the criminal justice system, homeless, or outside education, training or employment. www.raineronline.org
