First time buyers warned over home debts

22-Aug-2007

First time buyers have been cautioned that buying a home could plunge them further into debt even before mortgage costs are taken into consideration.

The Consumer Credit Counselling Service (CCCS) has said that the average homeowner aged 25 or under owes £20,290 on overdrafts, credit cards and other loans.

This is in comparison to an average figure of £12,113 for Britons of the same age who are still living in rental accommodation, the study added.

'There is a danger in young people getting on to the housing ladder before they are ready financially,' commented Malcolm Hurlston of the CCCS.
"Before taking out a mortgage, the under-25s should make sure they can still afford to live and not rely on credit to plug any gaps. That way lies financial disaster," Mr Hurlston added.
In related news, website Unbiased.co.uk has said that 2.5 million Britons are unable to work out exactly how much debt they are in.

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