Student years blamed for debt

Nearly two-thirds of 18-30-year-olds in debt blame their student years for their poor financial health, according to research carried out for Kensington Mortgages.

The survey, conducted across the UK by research firm RSGB, asked 1,000 adults about the causes of their indebtedness. Sixty-three per cent of young people blamed their student years for debt, 12 per cent of all age groups said cre-dit cards were the main reason for their financial problems. Among 40-50-year-olds, the proportion of people blaming their plastic rose to 20 per cent.

Ignorance was the cause of debt for 3 per cent of the population, who said they did not realise the size of their debt as it mounted.

Kensington Mortgages chief executive John Maltby says: “The research indicates that there is a need to offer young people and students alike the opportunity to cope with their financial affairs before they snowball, therefore becoming financially burdened before they begin their careers.

“Young people need to be aware that too much debt can cause them problems in the future. This can cause serious issues when they are looking for a mortgage, the biggest and most important financial commitment they are likely to face. We aim to provide borrowers with the help they need to get on their feet when conventional lenders will not help.”