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It s alarming the number of young adults who file for bankruptcy.Because it looks like the easiest way around, personally I think people take the system for granted. Wouldnt it be the best idea to take responsibility , work hard and pay the debts off? What are your ideas?

2006-10-01 04:44:29 · 21 answers · asked by Olderwiser 4 in Business & Finance Personal Finance

21 answers

This rise is consistent with the rise of the 'Footballer's Wife' image so touted by the likes of Victoria Beckham and Colleen McLoughlin. The major problem is that many young women who follow these celebrities then become desperate to emulate this glamourous lifestyle, buying designer clothes, holidays and jewellery they know they cannot afford.
This country also has the biggest number of credit agencies in Europe. There are more dredit card companies than ever, and more loan companies. Their 'cheap' credit and easy money are an attraction for cash-strapped families who struggle to cover existing debt or financial commitments such as the mortgage.These offers then seem good- you can have a big sum of money and pay it off later. One problem identified is that loan companies do not share information on borrowers, and so the total amount of debt is not revealed. There have been several UK cases in which people have committed suicide after falling into massive debt.
But many families are in debt simply trying to survive, buying essentials such as food and clothes for the children.
There is als a massive consumer culture in this country, where brands mean a lot, and so people rush to the latest technology.
People in this country are also too used to giving into their childrens demands, Few children can understand their parents have to earn that money, and also many items such as iPods are status symbols- you are considered uncool without the latest iTunes or the newest football boots (which are often advertised by celebrity football players and too many people make the assumption that if they are worn by professionals they must be good. Few parents in Europe would allow this, and it certainly wouldn't have happened only 20 years ago.
But few people realise that bankruptcy means a mark on their credit record, problems getting future credit, and also not being able to do any major financial project for any where up to 5 years. Working to pay off debt seems like too much hard work for young people who are too used to getting what they want when they want. But on the flipside some families are too stretched to do anything.
A better idea would be to educate both children and young adults on basic financial skills- budgeting, basic accounting, financial terms (few young people know what an overdraft is or an OD on a statement)- this would hopefully PREVENT the problem before it starts, saving money and even lives in the process.

2006-10-01 05:21:01 · answer #1 · answered by Anonymous · 0 0

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RE Why is more and more british young adults filing for bankruptcy?

It s alarming the number of young adults who file for bankruptcy.Because it looks like the easiest way around, personally I think people take the system for granted. Wouldnt it be the best idea to take responsibility , work hard and pay the debts off? What are your ideas?

2014-10-03 03:20:37 · answer #2 · answered by Anonymous · 0 0

Some people get into debt through no fault of their own. No one plans to get into such a state that bankruptcy is the only option.
Yes, it is relatively easy to do although it does cost GBP 400 to do it, which is crazy when you think about it. It does still have a stigma attached to it, but perhaps not as much as it did in the past.
You can argue that facing your responsibilities and paying your debts is the right thing to do, but for many the struggle with debt is affecting their health, both mentally and physically.
Every case is different and some of the answers here so far are far too sweeping in their condemnation. Life just isn't as simple as that I'm afraid.

2006-10-01 20:05:23 · answer #3 · answered by Andrew 4 · 1 0

i personally would say it is due to the consumer society in which we live, And because the finalncial lenders out there are not responsible when granting credit. Practically all high street stores offer store cards now where you get harrassed to sign up at the till with every purchase. Every time you walk through a shopping centre you can almost gurantee there will be some sort of promotianal stand for some credit card. All the junk mail advertising for credit cards an d catalogues. We just can not escape. You can easily see why it is so tempting.

JUst imaging just turning 18 and having previousley always been skint complanies are offering you money left right centre, its great at first, all the shopping trips, signing up to every card and catalogue that gets offered to you. Then reality hits. you cant make the monthley payments. As time goes on it gets worse. you attempt to get a loan to pay them off. The interest just piles up on every account until eventually it just becomes too much.

I blame the irresponsible lenders for this rise in young bankrupcies

2006-10-01 05:01:20 · answer #4 · answered by emski fairy 2 · 1 0

For the same reason it's rising in a lot of developed countries. The focus in school is on subjects like maths, science, English, etc. But there are no courses, even at Uni, about responsibility and finances. The only people who leave school with an understanding of how finance charges and debt catches up with you quickly are the finance or accountancy students. The rest of us go into the world and spend spend spend on credit then find out we've gotten ourselves into a mess of trouble.

Instance gratification is another reason that just didn't exist years ago before credit cards were so readily available.

2006-10-01 04:56:16 · answer #5 · answered by Iknowsomestuff 4 · 0 0

It's not only a British problem. "Back in the day" a man could get a job that he could hold for life, get married, have children, buy a car and a home all on his salary. Since WWII, financial institutions have seen an advantage to giving credit where credit is not warranted. "Now a days" a man can not support his family on one income. His wife has to work as well. Children are being raised by sitters. Because of lower income and higher prices many people find a comfortable life is just out of their reach without going into exorbitant debt. An illness or lost job can bring their world tumbling down.

2006-10-01 04:55:34 · answer #6 · answered by pleeks 4 · 2 0

Please be fair , most bankruptcies aren`t due to people living a jetset lifestyle then all off a sudden unable to comply with repayments .. It is far too easy to get into debt these days , i don`t work and was handed a credit card on a silver platter with a limit of £6,500 ! for me i knew not to go down that road but imagine the people with money worries being offered this light at the end of their tunnel its unfair as we all know the hole gets deeper but for that short time in their life they were at ease but then u have a credit card bill and alot worse if u have withdrew cash from it , the interest is astronomical .. I bet there are alot of people who are ill because they have had to go bankrupt its not a free ticket out of debt , but for some it is the only solution and i sympathise with anyone who has gotten into severe debt , especially if they have kids , everyone suffers . Alot of the time though i think the creditors are too blame ! My daughter will be 16 soon and i dread when she starts getting junk mail offering hard to refuse cash / credit cards / catalogues , the list is endless but hopefully i have drummed it into her not to touch any credit with a barge pole , fingers crossed ....

2006-10-02 23:51:36 · answer #7 · answered by Anonymous · 0 0

This is one way how in the richest economys of the world , attempts are being made to get the coming generations wise on money and its consequences.

Can be said to be a system which is not perfect, but then which system really is?

There are success stories which we do not get to hear about and the ones going sour as per this question.

On balance the money lenders have factored in the losses , from the gains they are making , and have a positive overall in their books.

The attempts are to get the economys on a roll and to ensure transactions keep on happening and rising on a macro scale and that stagnation and deflations are kept away .
This is commendable in Europe we have people who spend and risk, in contrast to countries like Japan, where there is very cheap credit and yet people do not borrow.

There of past years we have seen the Japanese economy being affected by this lack of consumer initiative and leadership in getting spending patterns on track to keep the wheels of the Japanese economy slowing down. Consumerism is a key requirement in the richer economies.

Then can we get on a roll, to be able to assist the 3rd world and others also come up.

2006-10-01 08:49:16 · answer #8 · answered by jsghatahora 2 · 0 0

I am only 22 and filed for bankruptcy three months ago... its too easy to get your self into debt these days and unfortunately i did, i struggled for over a year trying to pay my debts back but got made redundant from my job last year, which made matters worse got a new job but could not afford to pay all my bills as well as debts so tried a IVA but they charge you £7000 to do this and as i don't own anything the best thing for me to do was file for bankruptcy, i still have to pay money to my debtors for the next three years and all my Tax's goes to my debtors for the next year, i can't have a mortgage or anything like that for five years and have learnt my lesson. so by no means was i taking the system for granted.!!!
And there are probably many people like me.
But unfortunately like with anything in life you do get a few people who take advantage of things and don't learn but the majority of people are genuine and bankruptcy is the best option!

2006-10-01 04:58:15 · answer #9 · answered by Jennifer 2 · 2 0

The banks and credit card companies have made it much easier now than it ever was to get credit. People borrow more & more and when they cant afford the repayments they dont seek help but ignore the letters and then panic when the courts give orders to bailiffs who turn up and want to take the value of the goods from their homes. It is much easier to pay just under £400 to go bankrupt as it allows them to learn from their mistakes and start over again. This time a little older and wiser. I dont think it's even spare change for huge credit companies such as Barclaycard.

2006-10-01 04:56:17 · answer #10 · answered by MGN2006 4 · 1 0

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