Monday 15th of February 2010
A reliance on credit cards by young Britons who pile their purchases on to their plastic, rather than save for special treats, could result in many of them asking questions on individual voluntary arrangements (IVAs).
Moneysupermarket.com reveals that a third of credit card holders under the age of 20 use their plastic on a daily basis, a habit which could store up serious financial trouble for the long term.
Young Britons who have got into the habit of buying what they want instantly by using credit cards may require the assistance of an IVA to get them out of the red.
People in debt during their teens and 20s may want to use an IVA to sort their credit card debt of more than £15,000 now, as letting it build up could see them with sky-high balances which prevent them from getting on to the housing ladder.
"Young people must work hard to avoid the temptations of becoming trapped in debt. Reliance on credit cards at a young age is a dangerous trend," says credit cards expert at moneysupermarket.com Peter Harrison.
He adds that credit records can "open and close so many other doors", which may include getting a mortgage for a first home.
By Kim Parsons
- House price rise 'may not indicate recovery'
- Equity release 'needs to be increased'
- Need for IVA help could increase as expert predicts reduction in lending
- Government announces 'breathing space' for those needing IVA help
- Lack of subprime lending creating need for IVA help, expert suggests
- IVA information may help those left worse off by the Budget
