Warning over young people falling into debt
YOUNG people experiencing financial difficulties should see bankruptcy as a last resort, according to the Southport branch of Christians Against Poverty.
This advice comes after statistics showed that there has been a spike in young people from Sefton declaring themselves insolvent.
Data published by The Insolvency Service showed that scores of debt-ridden young people in Merseyside are experiencing financial problems, with 3,141 people in the region either going bankrupt, taking on a debt relief order (DRO) or accepting an individual voluntary arrangement (IVA) to manage their debts last year. Of those people, 146 were under 25 years old – 35 of whom were in Sefton.
Among adults of all ages, Sefton had the highest rate of insolvency in 2017.
One in 322 adults in the borough fell into individual insolvency during the year.
Gary Foulds, debt advisor at Southport Christians Against Poverty, said that bankruptcy should not be seen as the best way out of financial strife.
He said: “There’s certainly a lot more young people coming to us.
“Bankruptcy is always a last resort, we always try to get them through a payment plan.
“I would advise to get in touch with a free local charity – Christians Against Poverty, the Citizens Advice Bureau – who offer immediate advice.
“Take their advice, bankruptcy is not the only option.”
The charity is set up by Christians, but Mr Foulds insisted that faith was not necessary to be offered their support.
“We help absolutely anyone, we don’t differentiate.
“We don’t hide behind an image, we are Christian, but we just want our community to become debt free.”
As a debt advisor for Christians Against Poverty, Mr Foulds gives face to face advice and offers to travel to a client’s home to give assistance, and pointed to a highprofile recommendation the charity had received.
“I go to a client’s house, sit down, get to know them, make them feel at ease.
“As (money expert) Martin Lewis says, we’re holistic – we’re not just there for the financial side, we’re there for the person and for the family in co-ordination with food banks.”
Mr Foulds pinned the blame on a lack of education for leaving young people facing insolvency.
“It’s just society in general, there is a buy now, pay later mentality in that age group that is coming to us for help.
“It is a national statistic that there is an increase in young people in debt now and that is down to a lack of education in finance which we are trying to tackle in the Southport area.”
To approach Christians Against Poverty for help, visit www.capuk. org and enter your postcode in the search bar.
More young people see are being declared insolvent
Gary Foulds, from Christians Against Poverty: there to help anyone