For immediate release: Monday, 24th July, 2006

DEBT DELAYS HOUSE PURCHASE BY YEARS FOR GRADUATES

- Thomas Charles survey of 1000 graduates reveals major negative impact (of unsecured debt on property ownership -

• 24% of graduates can't envision being able to buy a property in the (foreseeable future because of debt
• 42% of graduates say their level of unsecured debt has delayed their (getting on the property ladder by between 3 and 10 years: 23% between 3 (and 5 years; 19% between 5 and 10 years
• 36% puts the delay at up to 3 years

(London, 24/7/06) Thomas Charles ( www.thomascharles.com), the leading (debt solutions consultancy, today revealed the results of a survey (amongst graduates to establish the impact of their levels of debt on (their ability to buy a property. In conjunction with the UK's No 1 (student accommodation website, Accommodation for Students ((www.accommodationforstudents.com), the company surveyed 950 people (across the UK who have graduated since 2001. 85% are under 30 and 65% (are aged between 23 and 28, a prime age range for young professionals (wishing to buy their first property.

The survey suggests that the current levels of unsecured debt amongst (graduates is having a major impact on the property market with fewer (graduates being able to afford to buy a property and having to postpone (getting on the property ladder by several years. Of the graduates (interviewed, only 10% currently had a mortgage. 58% of those interviewed (said that they had been unable to buy a property or have had to postpone (it because of debt. When asked how long it had/might delay them getting (on the property ladder, just over a third, 36%, said up to 3 years, 23% (said between 3 and 5 years, 19% between 5 and 10 years, and nearly a (quarter, 24%, said they could not foresee being able to buy a property (in the foreseeable future. 630,045 students gained higher education (qualifications last year (source: Students in Higher Education (Institutions 2004/05).

Graduates support high levels of unsecured debt. One third didn't have (debt at all but, of the remainder, 36% owed up to £5000, 23% owed (between £5000 and £10,000, 32% owed between £10,000 and £20,000 and 11% (over £20,000. Student loans represent a large part of this unsecured (debt, with the average loan being about £10,000. However, the overall (unsecured debt is swelled considerably by graduates' willingness to (incur credit card and personal loan debt once they are working. The (situation is further compounded because graduates are very often not (achieving the salaries they expect and often have to start their career (with modest earning levels.

James Falla, Director of Thomas Charles, commented:

"At Thomas Charles we're not surprised that graduates are finding it (difficult to get on the property ladder. With 60% of graduates leaving (university with a student loan debt legacy they are already off to a bad (start. Add the attractions of graduate loans and credit cards and it is (easy to see how unsecured debt piles up even when you have a job. (They find themselves living and working with others who are earning good (salaries with high cost lifestyles. Trying to keep up with these (lifestyle expectations means that many graduates just get further in (debt, often to a critical extent. Many of our younger clients at Thomas (Charles clearly fall into this category. (For many the idea of ever getting on the property ladder seems a distant (prospect and for a considerable number, a quarter of our survey, it (appears impossible in the foreseeable future."

The survey also showed that debt has an adverse affect on graduate (savings and pensions too. Two-thirds of respondents said their level of (debt was seriously affecting their ability to save. Just over a half, (51% said it adversely affected their ability to make pension contributions.)

Consumers wishing to contact Thomas Charles for advice on debt can do so (via the company's website (www.thomascharles.com) or by phone on 0800 072 5988

CONSUMER DEBT
Key stats

• 8M or 1 in 5 adults have unsecured debts of over £10k
• 4M adults have unsecured debts of over £20k
• 4M adults owe more than £5k on their credit cards
• 2M adults have secured debts of over £100,000
• 1.7 million adults have debt repayment problems (Over 1 million adults are 'quite likely', 'likely' or 'certain' to (declare themselves bankrupt or take out an IVA 73% rise in personal insolvencies over past year
• £1 trillion of debt

- Ends-

Notes to Editor
The research was conducted online in July 2006 with 950 graduates across (the UK. (Please see below some relevant tables.

What levels of unsecured debts do you have (student loans, credit cards, (personal loans, overdrafts, hire purchase)?

Do you agree or disagree with the following statements? I have been (unable to buy a property or have had to postpone it because of debt.

If debt affects your ability to buy a property, can you say how long it (has/might delay your getting on the property ladder?

Further charts, tables and further analyses are available on request.

About Thomas Charles & Co Ltd
Thomas Charles & Co Ltd was set up in 2004.
The Joint Managing Director, James Falla has 7 years experience in the insolvency and debt management industry and was involved in the set up of debt help specialists, Brookvale Group PLC, listed on OFEX since 2001.
Thomas Charles operates throughout England and Wales with its head office in Acton (West London).
It has a personal, consultative approach to debt management.
It focuses primarily on providing formal solutions for debt problems including Individual Voluntary Arrangement and Bankruptcy.
However, it will also provide advice around informal debt repayment plans where appropriate. It works with third party Insolvency Practitioners around the UK.
Thomas Charles is part of the Accuma Group PLC.

Top tips

• Don't bury your head in the sand. Work out your financial position (try debt-help-uk.org.uk debt wizard).
• Consider transferring credit card debt to a 0% card while you deal (with more pressing bills, such as any council tax or mortgage payments. (But don't use this as an excuse to run up more debt elsewhere.
• Don't take out other loans to pay off the original debt or use a (consolidation loan. If you must do this, be disciplined and don't use (the new loan money for anything else.
• Talk to your creditors about structuring a realistic repayment plan; (the CCCS can help (0800 138 1111).
• If you cannot do a repayment plan and you do not want to go bankrupt (then try an IVA, (see iva.co.uk for more info on IVAs).
  The IVA (helpline can help (0800 197 48 38).
• If you want to consider bankruptcy then try the CAB ( citizensadvice.org.uk)

Useful contacts:
CCCS: 0800 138 1111
IVA Helpline: 0800 197 48 38
IVA Wizard: iva.co.uk
CAB: citizensadvice.org.uk
Debt help: debt-help-uk.org.uk

For further information, please contact:
Stewart Ross (Ross Media Relations)
Tel: 07966 540787
stewart@rossmediarelations.co.uk

James Falla (Thomas Charles)
Tel: 0870 141 7271
james.falla@thomascharles.com

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About Thomas Charles & Co Ltd

Thomas Charles & Co Ltd was set up in 2004. The Joint Managing Director, James Falla has 7 years experience in the insolvency and debt management industry and was involved in the set up of debt help specialists, Brookvale Group PLC, listed on OFEX since 2001.

Thomas Charles operates throughout England and Wales with its head office in Acton (West London). It has a personal, consultative approach to debt management. It focuses primarily on providing formal solutions for debt problems including Individual Voluntary Arrangement and Bankruptcy. However, it will also provide advice around informal debt repayment plans where appropriate. It works with third party Insolvency Practitioners around the UK.

For further information, please contact:

Stewart Ross (Ross Media Relations)                                   

Tel: 07966 540787

stewart@thomascharles.com

James Falla (Director of Thomas Charles )

Tel: 01753 570442

james.falla@thomascharles.com