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Two In Five 18-24 Year Olds Are Already In Debt Nearly £3K

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37 per cent have no plan for repaying the debt

Millions of young people are building up high levels of debt, and that's on top of student loans. The financial pressures on students are well known, with rising university fees leaving many with tens of thousands of debt by the time they have finished their studies.

Fifty-one per cent of adults under 25 say they regularly worry about money, and 21 per cent lost sleep as a result.

Meanwhile 32 per cent feel their debts are a 'heavy burden'. Women are significantly more likely to worry about money than men – 57 per cent versus 45 per cent, and 24 per cent of women lose sleep over these concerns, compared to 18 per cent of men.

As many as 42 per cent say they have found managing money harder than expected.

Debt we go!

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Well if it's worrying them then at least it might be a tiny little hint that we're moving past the "debt == free money, load yourself up with as much as you like" atttitude. I suspect that's too optimistic though.

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Years ago these loans would never have been made as there would be real consequences for the banks when the loans defaulted. Now when it can be replaced at the touch of a button and any losses will be made good by the tax payer what do the banks have to lose.

The debate needs to be had as to who our monetary system is supposed to benefit but only silence from the politicians and media.

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I was in debt to the tune of £33k at 19, it was secured against my first house. Times gone by FTBs used to be in their early 20s so being in debt then is nothing new. What is different is this debt it not secured debt used for essentials, but unsecured... the banks should be worried!

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Years ago these loans would never have been made as there would be real consequences for the banks when the loans defaulted. Now when it can be replaced at the touch of a button and any losses will be made good by the tax payer what do the banks have to lose.

The debate needs to be had as to who our monetary system is supposed to benefit but only silence from the politicians and media.

Exactly.

But then the answer to the question of "who is our monetary system supposed to benefit" is 'bankers and the wealthy'. And as politicians and media moguls tend to be wealthy...

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I'm sure the mentality for many will be: "well, I've already got £50,000 of debt, what's a few £k more?"

Growing up with debt. Living with debt.

Sums up my thoughts on the true risk of student loans - breaks any taboo about having large debts early on, so likely be be living with debt (forever?) there after.

In the 'good old days', wasn't there quite a dim view of people who got themselves into debt? Presumably long gone now, everyone is in debt.

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I was always deep into my interest free overdraft as a student - if I had any money I put it in a savings account rather than clear the overdraft (more often than not I had more than my overdraft in the savings account). That was back in the days where you actually got interest on your savings though.

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I'm sure the mentality for many will be: "well, I've already got £50,000 of debt, what's a few £k more?"

Growing up with debt. Living with debt.

The article is more about teaching young people to live in debt and accept it as norm. Then they easier take more and more: tuition fee, car loan, mortgage ......

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If I was younger and more screwed over without a house, i'd load up on credit cards and go bust. Buy lots of shi that you can hide away and then liquidate.

Apparently i have 40k of credit available on cards, and I don't really have many. They just keep upping the limit as I pay off in full.

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I'm sure the mentality for many will be: "well, I've already got £50,000 of debt, what's a few £k more?"

Growing up with debt. Living with debt.

There's a worrying lack of financial understanding too.

A couple of my uni friends (graduated 5 years ago) are just paying off their 'interest free' overdrafts now.

I did try and explain it at one point but nobody wanted to know (looking back I probably sounded like a bit of an ****!)

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Here's a question. How many parents are thinking about their children's future?

I often hear mates saying "Well I was never given a helping hand" - yeah but there are going to be double digit billions of people in the world for your kids to compete with.

The time to start helping your kids is when they are born by building them up savings or assets to inherit.

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I remember one of my children saying the best thing to do would be to go bankrupt and not worry about it. This I suppose would be the alternative strategy than living within one's means and trying to save. It depends if you worry about being in debt or not. If you know there's a get out plan which maybe isn't too painful then maybe he was right. This was about 10 years ago and he didn't do it but paid off his student loan and worked instead. I can see where he was coming from though :)

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Back in the day, when I first moved to London I did (like many others) live in my overdraft - briefly bopping into the positive at payday and then back into the overdraft over the month.

This was due to a nice friendly interest-free overdraft rolled over from my student days at the time, but stopped at 23/24 when I got myself a bit higher in the wage game.

After that started being more responsible and saving a bit - and then bombed it (via the power of contracting) at 30 to pay off my student loan, to then start frantically saving for a deposit. Once I've put the deposit to some use, will similarly start frantically squirreling money away for a pension.

Am in London, so my deposit has to be bigger than most (ou-er!) but am sure people outside London have much the same race to break out of debt and then break back into it again for a mortgage.

But what I don't get - is student loans getting larger, house prices getting more expensive, and interest on pensions getting weaker, when do the wheels fall off? I only (!) had a 11k loan to pay back, so 2 to 3 times smaller than students now - and god only knows (without a HPC) where house prices will be in a few years if HPI carries on.

Surely the next generation coming out of Uni with 27k+ student loans and/or unsecured credit card debt are going to hit 30 or 40 trapped in rental accommodation, all debt and no savings, and then BAM! the system falls apart from trying to carry everyone as the money has been sucked upwards to the Uni's, Banks, Lenders and Landlords.

(well, maybe it will limp on to retirement age, but you get my drift in that people need the means to build capital or assets to function in a capitalist society without recourse to the state)

Hopefully something will change the way the game is played (interest rates going back up, house price crash) but otherwise, seems like a timebomb waiting to happen - and I don't get why the tptb seems hell bent on encouraging this timebomb through more debt and higher house prices.

*confused*

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I graduated 16 years ago - 3 year degree.

No grant, so my parents paid my accomodation. This cost £2100 full board - brekky and dinner inc for the 32 weeks I was there. Did that for 2 of the 3 years.

I had already quite significant savings from my paper round(!) and part time job at sixth form and got summer jobs. This more than covered 'incidental' expenses. I was going to gigs every other day.

I took a 2k loan one year and stuck it in a PEP ffs.

When I graduated I still had around 17k saved.

I got my 22 grand job, and was totally unencumbered.

Today that board cost has more than trebled. Fees will be 9k. And yet they'll. Still probably.only get that 22 grand job. Maybe 24. These kids should be marching on Westminster.

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I was always deep into my interest free overdraft as a student - if I had any money I put it in a savings account rather than clear the overdraft (more often than not I had more than my overdraft in the savings account). That was back in the days where you actually got interest on your savings though.

If you could get an interest free overdraft whilst at the same time getting a decent rate of interest on your savings (risk free), you'd be mad not to use the overdraft in order to bolster savings.

When student loans initially were introduced they were actually below interest rates and pegged that way IIRC, so you could take advantage of them to get cheap loans. Of course, once they were established, time to turn the screw.

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I graduated 16 years ago - 3 year degree.

No grant, so my parents paid my accomodation. This cost £2100 full board - brekky and dinner inc for the 32 weeks I was there. Did that for 2 of the 3 years.

I had already quite significant savings from my paper round(!) and part time job at sixth form and got summer jobs. This more than covered 'incidental' expenses. I was going to gigs every other day.

I took a 2k loan one year and stuck it in a PEP ffs.

When I graduated I still had around 17k saved.

I got my 22 grand job, and was totally unencumbered.

Today that board cost has more than trebled. Fees will be 9k. And yet they'll. Still probably.only get that 22 grand job. Maybe 24. These kids should be marching on Westminster.

I graduated a little bit before that during the 90s recession and got almost a full grant, plus fees paid, plus dole over the Summer holidays for the time I was doing the undergrad course.

I then went on to do a one-year postgrad qualification and got 95 quid a week plus fees paid for the course of the entire year. Happy days! Then after a summer on the dole I got another year at 80 quid a week on a work experience programme for grads!

Student loans were introduced the year after my undergrad and as a result I was able to borrow ~£300 in my final term (they were trialling it before rolling it out the following year) for next to no interest and pay it off at something like 6 or 7 quid a month over 5 years with a direct debit. Laughing all the way to the bank even though it took me 3 years to actually get a real job.

Meanwhile, flash forward to the present day and just about all students are coming out of university loaded with un-dischargeable student loan debt having had absolutely no financial support, finding it just as hard to get a job, facing starter salaries which have in no way kept pace with inflation if they can even get the equivalent of a 'graduate' job which doesn't seem to exist any more. Otherwise they face getting a low skill, even lower paid job with a massive debt looming over them. Bloody disgraceful and shocking that we have let the concept of affordable third level education for the masses go out the window.

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My daughter and her boyfriend have just come out of uni with just under £100k between them.

4 years courses. Studying plus living expenses.

It'll put them top of the pile for a zero hour gig at costa at the very least...

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I'm sure the mentality for many will be: "well, I've already got £50,000 of debt, what's a few £k more?"

That's a good point- the first lesson that students learn today is that being in debt is the place you start from, not a place you try to avoid going . A society that turns it's own children into a profit centre is sick at the core in my view- it's not as if getting an education is a luxury item these days- thanks to the fetishisation of degrees they have become a virtual necessity for even the most mundane jobs.

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