This is according to the Money Advice Trust; Joanna Elson OBE, chief executive of the Money Advice Trust, said: “Youth unemployment has edged ever closer to the one million mark, giving us a whole new generation of young people likely to be struggling with money. Our research indicates that over 55,000 (5.8%) of this young and unemployed population will be facing difficult debt problems. This is a desperately sad situation for so many young people to face. Dealing with debt can be a distressing experience which impacts right across our lives.
"Additionally… wage growth over the last 12 months has been just 2%, far below the current 4% level of inflation - meaning the cost of living is rising faster than how much we earn. We have concerns about people borrowing money to fill this gap. Anyone paying for bills or day-to-day expenses such as food with credit should seek advice as soon as possible, as this can be a very slippery slope to tread.
“We encourage people to seek advice as early as possible, as this means they will have more options for getting back into financial health."
