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For immediate release: Thursday, September 15th, 2005
YOUNG AND SINGLE WORST AFFECTED BY DEBT
- Thomas Charles survey reveals surprising findings -
(London 15/9/05) Thomas Charles (www.thomascharles.com), the debt solutions consultancy, has just published the results of research it has recently completed amongst people with debt problems. Surprisingly, it reveals that debt is worst among young people, with over 50% affected being between 18 and 35. Perhaps even more surprisingly, considering the costs of raising a family, over 55% of those with debt problems were single. 55% of respondents were in debt to the tune of £10,000 to £30,000.
Once again the research confirmed the easy availability of loans and credit cards as the overwhelming reason for debt problems, suggesting that poor financial principles and management are much more to blame than intrinsic debt per se. Understandable causes like unemployment, illness, failed business, or divorce, come way down the line. Given the option, it seems, many people simply cannot resist overspending. This is corroborated by how people best resolved their debt problems which largely revolved around simply not taking any more credit.
To solve their immediate problems respondents resorted to a variety of measures: IVAs (20%), informal repayment plans (12%), bankruptcy (10%). However the unhappiest statistic is the 55% who are still having debt problems.
For help, people turned to a number of sources including the Citizen’s Advice Bureau. However, the most popular option was to find a debt solution company via the internet, a resort chosen by two-thirds of respondents.
Managing Director of Thomas Charles, James Falla, said:
“Our research shows that people picked their debt solution company largely on the basis of its being able to really understand their individual problems and supplying helpful, impartial advice on that basis.
We are different from other debt management companies as, where possible, we insist on meeting with our clients face to face. This allows us to gain a complete understanding of our clients’ financial situations and explore the most appropriate solution rather than the “one fits all” approach adopted by so many other companies. We don’t think this process can be properly accomplished over the phone, by post or over the internet. We advise our clients on a range of solutions including: The informal Debt Management Programme (allowing affordable monthly repayments); Individual Voluntary Arrangement (IVA) allowing clients to settle debts over a period of time (normally 5 years); and Bankruptcy where this is the most appropriate solution. All are designed to help solve serious debt problems in the most realistic and beneficial manner.”
Thomas Charles conducted the survey among over 1000 people with debt problems.
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