Debt is our new best friend

With inflation making prices soar and the cost of living on a skywards direction, more and more Britons are finding themselves in increasing amounts of debt. It seems that the ‘buy now, pay later' motto that was once a luxury has become somewhat of a lifestyle for many.

Latest figures confirm this credit hungry trend. At the end of July 2006, the total UK personal debt was £1,237 billion, an increase of 10% on 2005 figures. The numbers are astounding as the average amount owed by every UK adult stands at a staggering £26,313.

However, can we blame people for getting into debt? Just by taking a walk down the street, a short trip on the tube or by watching your favourite television programme, you are opening yourself up to stream of advertising, carefully designed to make you go running to the shops, credit card in hand.

And it is not only the advertisers who are to blame. Banks and shops are only too eager to hand out their credit and store cards with the latest incentives.

Gay people are just as guilty when it comes to staying in the red. Although the LGBT community generally has a higher average income than heterosexual people, their penchant for shopping and image-driven lifestyles places gay people in the category with some of the highest debt figures.

The picture becomes more tragic when the figures are studied. The majority of gay people in debt are young, 20-somethings who have been to university and are starting out on their career ladders. With the rising costs of university fees, the average student is expected to owe more than £20,000 by the time they graduate. Those studying in London can expect their debt levels to soar even higher as transport costs and the high cost of living in London is taken into consideration.

Although the new top-up fees have been brought into action to enable more students from less-privileged backgrounds to study at university, the amount of debt that students will find themselves in post-graduation is astonishing. Particularly when you think that it is these same students who then have to struggle on the property ladder and the soaring costs of living.

Sally Hunt, general secretary of the University and College Union, said: "Students are working more hours than ever to try to meet the rising costs of living at a time when their debts are hitting record levels.”

"Struggling to pay the bills, racking up record debt levels and trying to keep on top of your studies are incredibly stressful. It is students from poorer backgrounds that find themselves hit the hardest as they are less likely to be able to rely on financial support from their parents."

It doesn't appear that debt levels are showing any signs of slowing down. Who knows what the future holds but the picture looks far from rosy. If you are concerned with your debt and would like to talk to a financial adviser for some confidential advice, contact Citizens Advice.

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