Citizens Advice has backed Liberal Democrat calls for more financial education for young people to prevent them getting into problem debt.

Figures from the Liberal Democrats show that the number of young people aged between 18 and 29 going bankrupt each year has risen from 1,681 in 2001-2 to 6,520 in 2004-5.

With a recent survey from the Association of Investment Trust Companies revealing that potential students and their parents are significantly underestimating the amount of debt they are likely to accrue at university, there are increasing calls for financial education to help young people falling into debt problems.

Young people going straight from school to university need to learn the skills to help them manage their student debts, claims Citizens Advice.

"We are very concerned about the amount of debt young people are in. People get into debt for all sorts of reasons, believing they can afford the payments, then borrow more and become more vulnerable to getting into debt," said a spokesperson.

The charity has been working on a scheme called Financial Skills for Life, supported by Prudential, which helps people learn skills including how to budget, how to avoid debt and how to choose the best credit card.

If you've just finished university or are about to start a new job check your credit report first. Many employers will carry out a credit check as part of the reference process.




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