Five-figure debts as young homebuyers load up credit cards
August 20, 2007 by admin
Filed under News, News-Credit-Cards
Young homebuyers are piling on debts onto their credit cards as they struggle to pay their mortgages, a debt charity said yesterday.
Figures from the Consumer Credit Counselling Service (CCCS) show that those who have bought homes under the age of 25 have over two-thirds more debt than their counterparts who rent, quite separate from mortgage payments.
The charity’s quarterly Debt Dashboard study, which surveyed 73,000 of the CCCS’ client records, shows that people who use their helplines who rent owe on average £12,113.
This figure soars to £20,290 among homebuyers.
CCCS chairman Malcolm Hurlston said: “There is a danger in young people getting on the housing ladder before they are ready financially.
“Before taking out a mortgage the under 25s should make sure they can still afford to live and not rely on credit to plug the gaps.”
The charity also revealed that unsecured personal loans accounted for more than half of the total debt recorded by young people who have come to them for help.
