Friday 10 July 2020

Youngsters are more likely to have problematic debts, credit agency says

Photo: Depositphotos.com

There has been a 70% rise in the number of youngsters with problematic debts over the past five years, according to figures from debt registration centre BKR.

One in seven people with financial problems are now under the age of 24 and the number of pensioners in financial difficulty is also rising, BKR said in a new report. Overall, however, there has been no increase in the number of people with debt problems since 2015.

Although youngsters still only account for 14% of problem debtors, they are less likely to have built up any assets and are more likely to have a temporary employment contract, director Peter van den Bosch said.

‘Debt leads to stress and other health problems,’ Van den Bosch said. ‘In addition, may of them have student loans, which are not registered with us.’

The BKR lists agreements with banks and mortgage providers, defacto loans for mobile phones and debts with other official credit agencies. It considers a debt to problematic if payments have been missed at least three times in row, or if the person has agreed a payment scheme to clear a debt.

The BKR does not include student debts but has been campaigning to have these included in its register, so that mortgage providers can get a better picture of potential home buyers’ credit worthiness.

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