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Young people bitten by debt bug

More young people are contacting local financial counsellors seeking help to manage their debts.
Many aged 18 to 25 are finding they were lent too much by banks and finance companies and some are now facing bankruptcy.
Wimmera Uniting Care counselling and drought service manager Machele Jelsma said many young people were now unable to manage the burden of excessive debt.
“Unfortunately some people aged up to their mid 20s have now found that they borrowed too much for a car, others have found it difficult to continue paying credit and store cards,” Machele said.
She said the causes of financial difficulty among young people varied, although many financial counselling clients were reporting that a loss of income or reduction in working hours had made managing their debts more difficult.
“Many people have committed a large proportion of their incomes to the repayment of debt,” Machele said.
“For young people this can be managed while they are working and often living at home but if their work situation changes Centrelink benefits are not enough for them to continue making payments.
“For a young person with unmanageable debt, it is not uncommon for the only remaining option to be bankruptcy.”
Financial counsellors are available free of charge. For a referral, contact Consumer Affairs Victoria on 1300 55 81 81.

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Posted on May 27 2009

Posted by on May 27 2009. Filed under Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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