CreditToday: Debt levels soar for London's youth

Average debt levels have soared by 75 per cent since 2008 among young people living in London, according to figures released by the city’s deputy mayor.

The average debt level for 17-24 year-olds stands at over £5,500, up from £3,500 in 2008 when the recession began, according to a report by the London Debt Strategy Board (LDSB) entitled "Treading Water".

There are also more people in arrears with debts in London than in any other UK region. The number of Londoners in arrears is 13 per cent, compared to the national average of 10 per cent, the report found.

There is nothing wrong with debt provided you can manage the repayments. Unfortunately many of us need to have some amount of debt in order to be able to function in today’s world so here are some useful tips on how to keep those debt issues under control;

1. Never borrow more than you can afford.
2. Do a budget wizard; learn to live within your means.
3. If you have a problem re-paying a loan then speak to someone sooner rather than later.
4. Borrowing can be expensive so think very hard before you commit yourself to a loan. Look at the amount per month you have to pay and check the total amount you have to pay back, this includes interest, all admin charges and any insurance.
5. Sometimes it’s better to ‘save to spend’ rather ‘borrow to spend’.
6. If you have a mortgage why not think about fixing this on a low interest rate.
7. Avoid borrowing on credit cards as this is a very expensive way of doing so.
8. When you are thinking of buying something ask yourself, 'how am I going to pay for this?', 'what is the cheapest way of doing this?'
9. It is not a race to see who can get to the credit card limit the quickest. Make the credit card work for you by paying the balance every month, that way you will not pay any additional costs but get purchase protection under the card.
10. If you don't need it, can't afford it then don't buy it!