The OFT and the Trading Standards Institute are today raising awareness about young people facing debt as schools across the country take part in the final of a competition testing pupil's consumer skills.
The Young Consumers of the Year final on June 27 is the last stage of a nationwide schools competition which aims to develop consumer skills in areas including money and finance.
Newly research by Consumer Credit Counselling Service (CCCS), released today shows that under-25s are more likely than older age groups to use catalogue and store card borrowing but less likely than older adults to borrow on credit cards.
The average amount owed by 18-24 year-olds in debt is £12,790 according to the CCCS, which consists of personal loans (56.4 per cent of borrowing for young people in debt), credit cards (28.5 per cent), overdrafts (7.3 per cent), store cards (2.3 per cent), catalogue debt (2.1 per cent) and other borrowing (2 per cent). The
figure excludes student loans and secured lending.
In comparison the makeup of personal debt for 40-59 year-olds involves credit cards (50.6 per cent), personal loans (39.9 per cent), overdraft (4.3 per cent), catalogue debt (1.2 per cent), store cards (2 per cent) and other borrowing (1.9 per cent). The final of the Young Consumers of the Year competition for 14-18 years-old is organised by the Trading Standards Institute, takes place in Manchester on June 27 and aims to develop consumer skills and knowledge while improving confidence in areas such as money and finance, food and health, safety and the environment. See press release (earlier one).
Ron Gainsford Chief Executive of TSI said: 'Young people want to live for the day but the problem with debt is that it affects consumers many years afterwards. When buying on credit you should try to shop around for the best rate, check on repayments and if you get into difficulty get advice as soon as possible.'