A rising number of young people are seeking debt assistance with thousands being declared bankrupt.
Government figures reveal that more than a quarter of people are turning to a new insolvency scheme. Those aged 25-34 are the largest age group seeking debt advice. The new form of bankruptcy is called Debt Relief Order (DRO) which is typically designed to protect those in debt from creditors.
The scheme protects those who have debts of less than £15,000 that donít own a home and have less than £300 in savings or other assets.
A quarter of the 44,000 people who have taken them out so far are aged between 25 and 34 years old. The growing number of financial pressures facing young people nowadays is starting to reach breaking point as thousands of them turn to the new government scheme.
The campaign is supported by debt advice charities who urge young people to seek help and avoid the pitfalls of high interest personal loans, such as payday loans.
Speaking to The Independent, Joanna Elson, Chief Executive of the Money Advice Trust (MAT), said; “At the same age their parents would most likely have bought their first home, have a comfortable pension lined up, and be saving for the future. For today’s 25 to 34-year-olds the picture is much bleaker.”
The DRO is a cheaper process than bankruptcy for those in England and Wales without going to court. They are also available in Northern Ireland with the same qualifying conditions, however, you are also allowed to own a car up to the value of £1,000, in addition to having less than £300 in assets.
If you feel that your debt problems have escalated beyond your control, you could seek out professional help to find a suitable debt management solution for you.
Compare debt management solutions with Money Expert.