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Debt advice for young people
Desperate
for your first car but can’t afford it? Really want the latest
phone but haven’t got the cash right now? Tempted to “buy now,
pay later”?
When you want something now that you can’t afford now it can be
tempting to buy it on credit (buy now pay later).
BUT, Stop, Think - Can you afford it?
Buying on credit often means you end up
paying a lot more in the end,
and can get you into all kinds of trouble.
People usually borrow money when they want to pay for something
like a family wedding or a new car, but although the thought of
achieving this goal is exciting you need to think seriously
about the long term costs of any debt and
to
take time understanding
what you may be getting yourself into.
 Credit comes in different forms - Credit cards, instant credit,
store cards or personal loans. If you do decide to buy on
credit,
shop around,
don't just take the first offer you see. It is best to compare
sources of credit and APRs before borrowing - generally
speaking,
the lower the APR, the better the deal. Can you afford it?
Before you commit to an agreement make sure you can really
afford the repayments, don’t let yourself be talked into
borrowing anything more than you want to.
Consider
whether you will still be happy paying every month when that
phone is no longer the latest model or the car is looking shabby
and costing you even more money in repairs.
What
about saving up for it?
You
won't have to pay interest and by the time you have saved there
might be something even better available.
If
you do get into debt problems, get good impartial
advice as early as possible.
Talk to a friend, teacher, parent or agency such as the
Citizens
Advice Bureau who offer free independent and confidential advice
about debt and advice on other rights including tenancies and
employment
– they won’t tell your parents if you don’t want them to.
 The following
phone numbers
may also be useful: The National Debtline, which has a 24-hour
answering service on 0808 808 4000, Consumer Credit Counselling
Service on 0800 1381111, Direct Debt Line on 01323 481111 1.
So
remember:
·
Think – do I really need this item?
·
Shop around – for the best rate of credit
·
Check – you can afford repayments
·
If
you get into difficulty – get advice asap.
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