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Young people feeling strain of debt in Wales

Debt worries affect the 18-34 age group more than any other age group, according to a report from Consumer Focus Wales.

Looking into the financial wellbeing of people in Wales, Consumer Focus Wales found that 29% of people in this age group reported falling behind on bills or missing credit repayments at some point in the last 12 months.

23% of people with long-term illnesses or disabilities and 26% of people on low incomes also reported experiencing such problems.

The report added that even many of those who aren`t in arrears often struggle. Over a third (35%) said they struggle with their bills and credit commitments "from time to time", and 17% said they faced a "constant struggle" or have "real financial problems".

10% of people who had borrowed money said they had taken a loan out to pay off previous debts - something that an expert at the IVA Advisory Centre warned could allow a serious problem to develop.

"Taking out a new loan to pay off existing debts can be effective if the borrower intends to make their debts more manageable, but only if the debt can still be paid back soon enough.

"If a borrower is considering this because they`re really struggling and have no other way of repaying their debts, however, then a new loan is unlikely to be suitable. In a case like this, they would be better off speaking with a debt adviser about a more appropriate solution."