Buying your first house can be very exciting but it can be a very stressful time as well due to the amount of financial support that is often needed.
Many young home buyers are taking out expensive personal loans and overdrafts so that they will be able to pay their monthly bills.
A leading debt charity heard that this is leading to extensive long term financial problems for young home buyers.
According to the Consumer Credit Counselling Service (CCCS), people under 25 who have bought a house owe two-thirds more money than tenants in the same age range do. On top of this debt, the homeowners also accumulate a lot more credit.
The main reason for people being in this much debt is because of an eagerness to jump on to the property ladder at a time when the interest rates are rising. The CCCS based its comments on the regular quarterly Debt Dashboard study of the 73,000 client records and their ability to repay their loans.
The charity said that the people who used their help-lines on average owed £16,351 by the time they reach 24. Also, home buyers under the age of 25 owe an average of £20,290 on unsecured credit. This is compared to just £12,113 that tenants owe in the same age group.
The charity also discovered that young people were more likely to use catalogues, overdrafts and store cards which all contributed to the reason why they were in so much debt. One thing that young home buyers could do in order to lessen the money they owe would be to get debt management advice from an expert.
The charity, CCCS, advises young home buyers under the age of 25 to make sure that they can afford to live, as well as paying the mortgage, without having to rely on taking out loans.
A leading debt charity has discovered that young home buyers are taking out personal loans and ending in financial difficulties.
The main reason for people being in debt is because of an eagerness to jump on to the property ladder in times of high interest rates.
Young home buyers could seek debt management advice from an expert in order to reduce their debts.
Article Source: http://EzineArticles.com/?expert=Gill_Critchley
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