The current recession may have long-lasting effects for the young according to some local authority leaders, who claim a “lost generation” of young people may not escape the long-term unemployment trap.
A Local Government Association (LGA) investigation found that around a quarter (38,000 people) of the total of redundancies made between October and December were people aged between 18 – 24.
The LGA compared the current situation to past recessions, commenting that increasing numbers of under 25′s had been excluded from the labour market as a result, and that urgent help is needed to prevent this from happening again.
Debt advice organisations have warned that they have experienced a growing number of young adults who are in financial difficulty following the loss of their job, and that they are struggling to find new employment to cope with their growing problems.
Professionals offering debt help to those in a vulnerable position, often find that following their initial debt advice, a specific programme is needed to reduce the amount owed.
These often include debt help solutions such as a debt management plan or an IVA (Individual Voluntary Arrangement).
These solutions allow struggling individuals to repay what they owe at an affordable rate, and can often see debts discharged within 5 years.
Debt management is an informal solution, which consolidates balances into a single payment – without another loan being taken. Repayments are negotiated and spread over a longer period – making them more manageable for the customer.
An IVA is similar in that unsecured balances can be consolidated, however an IVA is over a set period of time (usually five years), after which time all unsecured balances are written off.
Unlike a debt management plan, an Individual Voluntary Arrangement requires an Insolvency Practitioner to arrange the programme and offer impartial IVA advice. IVA help and support is also offered throughout the full term.
Reputable companies who offer free IVA advice, along with support, include The Debt People, Chiltern Debt Management and Hamilton Locke. They can all provide free debt advice to anyone struggling with their finances.