Bankruptcy Rate in Under-25s Rises
Credit counsellors report proportion of clients aged under 25 is growing
13th September 2005
The Consumer Credit Counselling Service (CCCS) has reported a rise in the number of people under 25 who are considering bankruptcy as a solution to their debt problems.
The charity, which advises people on handling problem debt, said that in 2003 only 6% of its clients were aged under 25, while last year the figure was 15.2%. So far this year, the rate stands at 12.6%.
While most people seeking debt advice are in their 30s, with a mortgage and children, people under 25 are less likely to have any assets such as their own home, and much lower incomes, so bankruptcy is a more likely outcome.
While the charity says that although bankruptcy is now easier than ever before, with many people being discharged (that is, coming back out of bankruptcy) after a year, it is still not a 'light option' and will usually have a serious effect on their credit rating.
The average debt of under-25s seeking help is now just under £15,000, nearly double that of between 1997 and 1999.
Read More: Guardian: More young people seek bankruptcy
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