RSS Feed
December 30th, 2011 
FAKE NEWS for the Zionist agenda
By
Becky Barrow
Last updated at 7:19 PM on 29th December 2011
Young people addicted to the ‘have now, pay later’ culture, or who cannot cope with the crippling cost of living, are being plunged into insolvency in record numbers, official figures revealed yesterday.
The shocking figures, from the Government’s Insolvency Service, said more young people are taking out a new type of insolvency than any other age group.
Since the Debt Relief Order was introduced in April 2009, one in four have been taken out by a young person between the age of 25 and 34.
Struggle: Debt-ridden young people are being crippled by the rising cost of living
WHAT IS A DEBT RELIEF ORDER?
Debt Relief Orders are only an
option to people who have almost no assets, who cannot pay their debts
and, crucially, have no prospect of their situation improving.
You
must have debts of less than £15,000, and have only £50 or less of
disposable income left each month after paying your essential bills,
such as rent and heating.
You cannot have assets of more than £300, excluding your pension pot, although you can have a car if it is worth up to £1,000.
To take out a Debt Relief Order, you do not need to go to court. The only charge is a fee of £90 for the service.
All
your debts are wiped out after a year, unless your circumstances
change, such as getting a better paid job which means you have more
disposable income each month.
If your circumstances do improve,
the Insolvency Service can scrap the Debt Relief Order. Since April
2009, 428 have been revoked.
The long-term impact is massive,
because the black mark on your credit history lasts for six years.
This
means you are unlikely to be able to take out a mortgage, a credit card
or a loan.
Mark Sands, director of personal insolvency at the accountants RSM Tenon, said: ‘They are spending money that they cannot afford to spend.
‘It is all about people borrowing too much money. It is the ‘have now, pay later’ culture.’
He said many other victims are tipped over the edge by the cost of living, which means they have no choice but to borrow money to cope with their record household bills.
Mr Sands said: ‘They are the sort of people who have a shortfall every single month, so the £100 food bill just before pay day is put on their credit card every single month.’
Card culture: Many between the age of 25 and 34 are spending more than they can afford
Experts said yesterday the figures also highlight an extraordinary social change which is hitting the so-called Generation Y in an unprecedented way.
In their late twenties and early thirties, many of their parents had got married, bought a home, had children and started to build up a pension.
But their children, who are now grown-up, have no chance of getting onto the property ladder, have large debts and little chance of being able to afford to pay into a pension.
Joanna Elson, chief executive of the Money Advice Trust, the debt advisers, said: ‘Many struggling 25 to 34-year-olds might have expected to be further up the financial ladder by now.
‘At the same age, their parents would most likely have bought their first home, have a comfortable pension lined up and be saving for the future.
‘For today’s 25 to 34-year-olds, the picture is much bleaker.’
She said their debt situation is made worse by the fact that many young people took out debts, hoping that pay rises in future years would mean they could easily pay them off.
In reality, millions of workers have seen their pay either frozen since the start of the recession in 2008, or have received paltry pay rises which are far below inflation.
Mrs Elson said many of those suffering debt problems are trapped in the private rental market, with landlords charging record rents around Britain.
Property ladder: Many of those suffering debt problems are trapped in
the private rental market, with landlords around
Britain now charging record rents
She said: ‘Traditionally when young people have borrowed money it has been with the expectation of a continual rise in earnings over coming years.
‘Young people of today may have borrowed with the same expectations, but the difference is that those expectations have not been realised, leaving many struggling to meet agreed repayment plans.
‘At the same time it is getting more expensive to fill up the car, heat the home and put food on the table.’
The Insolvency Service’s research is based on an analysis of all 44,000 Debt Relief Orders taken out between their introduction in April 2009 and September 2011.
Mr Sands predicts a record of 30,000 will be taken out next year, with many tipped over the edge by excessive spending over the festive season and the high cost of living.
Una Farrell, from the Consumer Credit Counselling Service, the debt charity, said: ‘These figures highlight the difficult financial situation that many young adults are in.
‘Generation Y faces a future of higher debts and fewer assets than older generations.’
Share this article:
Here’s what other readers have said. Why not add your thoughts,
or debate this issue live on our message boards.
The comments below have not been moderated.
-
Newest -
Oldest -
Best rated -
Worst rated
It’s only a matter of time before some hotshot comes up with the bright idea of selling your organs to settle the debt. There’ll be a lot of people after that time without (literally) a leg to stand on – all because they didn’t make do and mend.
Report abuse
They ought to bring back debtors prison for some of these people.
Report abuse
Colette
Unless you’re a baby boomer in which case you believe the world owes you you a final salary pension, retirement at 65 and 30 years of free social care afterwards.
Report abuse
Colette
Unless you’re a baby boomer in which case you believe the world owes you you a final salary pension, retirement at 65 and 30 years of free social care afterwards.
Report abuse
Colette
Unless you’re a baby boomer in which case you believe the world owes you you a final salary pension, retirement at 65 and 30 years of free social care afterwards.
Report abuse
Whilst people who are due to retire now have lovely big pensions AND a house (or many houses, bought for tuppence-ha’penny during the property boom and privately rented) to live in. Doesn’t seem fair to me. – lolliplop, West Mids, 29/12/2011 21:05 – first of all arent you generalising a little bit too much? Nearly everyone when they are young find it tough to get property, pay the bills etc. unless you have a wealthy background. Life is what you make it. You obviously seem resentful of others who have worked hard for what they have. I lived on my own at 17 and now at 46 have a four bed house and work for myself. It’s all about attitude. Stop bleating and worrying about other people and see how you can change your life for the better. Young people these days have never had it so good with credit but have no clue how to budget or manage their finances. Time to grow up and start taking responsibility and stop trying to compete. I have always wondered why it wasnt taught at school or home
Report abuse
Why does everyone blame the young and their ‘new fangled gadgets’?
We can’t buy homes as we are priced out of the market completely, rents are high and the vast majority of us don’t live beyond our means. There is a real worry for the future because the economic situation is a complete unknown entity at the moment, and the fact that people could work at one place for 20 years is impossible now. You go to university to get skills only to be told its a waste of time, and now you can’t do that because the cost is prohibitive. We see the mess that people are in with pensions but have no money to pay into one ourselves and probably won’t get one anyway because we’ll have to work until we’re 80.
But it’s because we have computers and its cheaper to fly on the planes so really our lives are sorted. We have it lucky compared to a lot of other places but its not easy. So stop deriding the young and support them. At least give them hope.
Report abuse
All well and good to get debt written off but who will end up cover the bad debt??? i suspect that will be the rest of us then! Now look here! If you want something, SAVE and PAY for it, you should NOT EXPECT to have every latest gadget NOW!! in fact, saving and paying for goods is very fulfilling, try it!
Report abuse
lolliplop, West Mids, 29/12/2011 21:05 ………’Scuse me, but WE paid around 13 something or other INTEREST on our mortgages in those days, and WE earned a pittance of what people earn today! WE also did without all the stuff YOU take for granted ……… nights out, holidays – we cooked our own paltry meals at home …. we wore the same dull clothes for years on end ……….. TRY IT, luv. And NO, I don’t have a lovely big pension! I worked for a nationalised industry for going on 20 years, paid money into the firm’s pension scheme (that money would have given me some better food) ….. and you know what – I get a pension of £39.49 …………………. A YEAR from that! You’d better believe it. All the older people have had to do their work THE HARD WAY – without all the modern gadgets … you know with pencil and paper.. Now be quiet, my dear – you are obviously too young to know how it’s been in the past -so don’t be so critical..
Report abuse
Anyone who cannot realistically clear all their unsecured debts within 3 years would be a complete fool NOT to take one of these out, and fast. And any parent with any sense would be helping their kids to do so. They are going to need every small advantage they can get in the lean years ahead, a clean balance sheet is the very best thing they could have, and tricked and trapped into keeping fat cats fat is not why you brought them into the world
Report abuse
The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.
Related posts:
Views: 0
Posted in 
Tags: 
