Debt Relief Orders were something that the government created in 2009 and were designed to protect creditors from those with debts less than £15,000. Since their launch, many young people have been taking advantage of them and this just shows how many financial difficulties young people are facing in this country.
A recent campaign has been launched by charities advising on debt and is targeted towards young people, encouraging them to seek help with their debts early on. It is hoped that the campaign will help young people avoid the financial difficulties associated with payday loans, which offer a small amount of money for a very high interest in the short term.
Money Advice Trust is headed by Joanna Elson who has said, “The picture of young people today is much bleaker than it was for their parent’s generation, in the past those aged 25 and up were buying homes and saving for a pension, but with the economic climate today this is something that is simply not possible and many of these people are instead suffering from debt. This means that they remain trapped in the rental market and are unable to find their way onto the property ladder.
“In the past people are borrowing money and they could reasonably expect that their incomes would go up but today this is something that is no longer guaranteed and many people are finding that even if they borrowed money responsibly they are now unable to pay it back.
Furthermore, young people are being faced with a higher cost of living as the price of food, energy, and transport is all increasing. All of this combined means people are simply unable to afford the repayments on their debts.” Since 2009 nearly 50,000 Debt Relief Orders have been issued in the UK.