Young homeowners in debt via credit cards

22/08/2007

Young homeowners are falling into a debt pit, almost twofold as much as those who are still in a rented accomadation. These young professionals now face average debt levels of £20,000, mainly in unsecured debt i.e. credit cards , overdrafts and loans. Between the rented, debt rests at around £12,113.

The outline of credit is greater amongst those who have purchased a property, at present standing at 7.64. People who are living in a rental accommodation, the outline of credit release result at an average 5.95.

The debt charity, Consumer Credit Counselling Service configured all data. Group chairman, Malcolm Hurlston, commented: "There is a danger in young people getting on to 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 any gaps. That way lies financial disaster."

Credit card debt totals for more or less 28 per cent of unsecured debt amongst the young, personal loans would take around 50 per cent.