into debt The survey also reports that the 35 to 44 age group was most vulnerable to running up significant levels of debt, making up around a third of those owing more than £10,000. 18 to 24 year olds were not immune however, with one
in 20 surveyed already owing over £10,000. With the retraction of financial support for students, and the introduction of top up fees, this age group look set for greater susceptibility in the future. Some of the major banks have started to provide specific student and
personal.barclays.co.uk/BRC1/jsp/brccontrol?task=articlegroup&site=pfs&value=7146&menu=4375 graduate banking help to reduce the potential impact on those who choose to take on further studies, but more looks to be needed. Due to changes in the law, the number of bankruptcy declarations has seen significant rises, as people see it as the only way out of their debt crisis. Creditaction reports that, Sthe proportion of bankruptcies among the 18 to 29-age group has more than doubled in the last 4 years. Chris Holmes said, "Those worrying about their finances should seek professional advice as taking out the wrong debt solution could make matters worse. Indeed, bankruptcy can sometimes appear to be the easy way out for people with serious financial problems, but there are difficulties associated with this that can remain for some time. Indeed, bankruptcy stays on your credit file for six years which can affect your ability to get a mortgage and credit, and you will pay higher interest rates. In some cases, it can also have an adverse effect when applying for jobs." Another recent trend, fostered by wide scale advertising, is towards debt consolidation loans in an effort to make loan repayments easier to keep track of. However, Richard Brown, Chief Executive Officer of
moneynet.co.uk/loans/index.shtml Moneynet, has warned that people should, SThink carefully before consolidating their debts, this can prove to be a lifesaver for many people. Amalgamating all credit card, store card and personal loan debt into one can make the payments more manageable. However, once this has been done it is often sensible to destroy existing credit cards and avoid the temptation of running up further debt until the loan is repaid. Disclaimer: All information contained in this article, is for general information purposes only and should not be construed as advice under the Financial Services Act 1986. You are strongly advised to take appropriate professional and legal advice before entering into any binding contracts. Useful resources: Moneynet
moneynet.co.uk financia.comparisons Barclays Bank
personal.barclays.co.uk/BRC1/jsp/brccontrol?task=articlegroup&site=pfs&value=7146&menu=4375 stude"
