We are going to discuss loads of recession topics over the next few months, but before we do, let’s put a stake in the ground and take a look at the current financial situation.

When you’re young, there may not be the responsibility of having a mortgage, 2 cars, 4 kids and a dog, but that does not stop you from getting in to some serious debt. Tech Tribe reports that a staggering 48% of 19-25 year olds have over £20,000 in personal debt. When that is added to the fact that 70% of respondents have less than £5k savings and the even crazier figure that 53% have less than £1,000 in savings, it is a pretty bleak situation. Especially when you take in to consideration that 10 years ago the average debt was around £2,000…

I mean it is clear that a lot of this debt will have come from the well documented lives of students. Generally, when you are student there are three things you care about, your degree, having fun and having enough money to do the formers. Money is very, very tight and every penny really does count. So when there are less jobs and less money up for grabs, it seems there is only one way for students to go, in to the red.

Tech Tribe tells us that those out of university have the same level of debt as those in university. Even earning a wage doesn’t mean that debt is going to be paid off - the cost of living and increased responsibility become an issue. There is a lot of pressure, much of which is placed on the job market – getting and keeping a job that will allow them to manage that debt, let alone start to pay it off. So, when this year’s graduates walk out of their ceremonies in a few months time it may be the end of their student life but it’s certainly not the end of their student debt.

Tags: Money, Recession, Tech Tribe