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If is wasn’t for the support I got from Rainer (South Yorkshire) I would have been back in prison by now.

John – young person

Report shows debt is "endemic" amongst the young

13 May 2008

 

  • Ninety percent of young people polled had been in debt by age 21
  • Disadvantaged hit hardest, with debt causing homelessness and relationship breakdown

 

Debt has become 'a fact of life' amongst young adults, who increasingly rely on credit to get by, according to a report released today by youth charity Rainer. 

  • 90 per cent of young people polled had been in debt by the age of 21
  • Almost half of those polled had owed more than £2,000

 

The report raises particular concerns about disadvantaged young people, who are surviving on low incomes.  Although this group tended to owe smaller amounts, they were less able to repay or manage what they did owe.  Rather than student loans or overdrafts, disadvantaged young people tended to borrow from family and friends or through store cards or catalogues.  A large number owed money through rent arrears or unpaid bills. 

 

More than a third of those borrowing from family said that the debts had caused serious problems in their relationships, something of concern to the charity as family breakdown is the main cause of homelessness amongst young people. 

 

Rainer chief executive Joyce Moseley said that debt could lead to depression and anxiety, particularly for those who were experiencing difficulties in other areas of their lives.  She pointed to poverty and a lack of financial skills as two of the underlying causes of debt amongst young people.

 

"Interviews with our young people showed that more than a third have to manage on less than £5 a week after debt repayments, bills and living costs and one in five are left with nothing at all.  One unexpected expense can see their debts spiralling out of control and this has a devastating impact on their lives."

 

The charity is calling for significant investment in financial education for young people and for measures that tackle poverty in other sections of the population, such as children and the elderly, to be extended to young adults in need. 

 

A copy of the report can be downloaded from our Policy and Research section.

 

Ends

 

Notes to Editors

  1. For more information, please contact Lucy Jackson, Rainer Press Officer on 020 7336 4814 or 07734 022 409.
  2. The research drew on polling of 4,000 members of the YouGov omnibus panel plus in-depth questionnaires, interviews and focus groups with more than 100 young people across the country.
  3. 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.