Credit availability 'has led to debt problems'

31 March 2008

The growing availability if credit has resulted in many young people getting themselves into debt, according to recent comments made by Scottish Widows.

Anne Young, Savings Expert at the organisation, stated that parents are having to subsidise their children to give them a helping hand.

While elements such as student debt and other loans have obviously had an impact, she said, the "proliferation" of credit has also plunged these youngsters into financial turmoil.

Credit also given out may be tightened by service providers in a bid to rectify the problem, she added.

Ms Young remarked: "I think what may happen is that some of the credit that has already been given may be tightened."

If greater emphasis is placed on debt when children are still in school then some of the problems could be averted, she argued.

Recent research carried out by the firm has said that two in five parents gave children money because they had a greater need for it.

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