Press Release

A NEW GENERATION OF DEBTORS

September 12, 2005

A report released today (September 12) by Consumer Credit Counselling Service, Britain's leading debt charity, reveals that the average client aged under 25 coming for counselling in 2005 owes £15,000.

Until 2003 only six percent of CCCS' client base was made up of people under 25. While CCCS has been growing to meet increased demand, the under 25 age group is the only one which has been growing as a proportion of clients. More young people are getting themselves into situations where they find themselves unable to meet their unsecured credit commitments.

The main findings of the report include:

• The average debt of a client aged 18-24 in 2005 is £14,984;
  
• Under 25s have more debt held on personal loans than on credit cards. Over
  25s hold more debt on credit cards;
  
• CCCS is counselling increasing numbers of young people;
  
• Young women have more individual debts than young men, despite owing less;
  
• Unemployment amongst CCCS clients is higher than the national average -
  about eight percent of clients under 25s are unemployed.

Commenting on the report, CCCS chairman Malcolm Hurlston said,

"The growing trend for young people to get into these amounts of problem debt is a concern. Bankruptcy figures are soaring, and this rise may be accounted for by the young who are without assets and who have overspent on credit cards and personal loans. "These trends are a naturally consequence of the desensitisation of borrowing - credit cards have blurred the distinction between borrowing and spending and for many young people, student loans have made borrowing normal."

• CANDY FROM A BABY - The rise of debt among the young