Debt Relief Orders and the younger generation

More people aged between 25 and 34 – the so-called 'Generation Y' – are turning to debt relief orders to deal with their debt problems than any other age group, Insolvency Service figures show.

The figures, taken from a preliminary analysis of 44,000 DROs in England and Wales over the first two years since their introduction (April 2009), show that one-in-four people with DROs fall within this age group.

The Insolvency Service is running a 'Dealing with your debt' campaign with support from debt charities Citizens Advice Bureau, Money Advice Trust and the Consumer Credit Counselling Service to help the young deal with their debt in the most appropriate and effective way.

The campaign aims to encourage individuals with debt problems to manage their debts responsibly if they are struggling with their finances and seek help earlier rather than later, and in particular:

* Avoid the pitfalls of taking out high interest personal loans, for example payday loans, if necessary by seeking alternative forms of credit;

* Find out where they can obtain free debt advice

* Understand the options available to them if they feel their level of debt is unmanageable