Number of under-25s seeking FOS support surges 200%
The number of 16-24-year-olds contacting the Financial Ombudsman Service (FOS) for help with loans, credit cards and debt services has increased by more than 200% over the last five years, new figures show.
"This upward trend in young people seeking FOS support is worrying and reflects the rise in young people turning to loans, credit cards and other credit facilities to support their finances."
2,858 enquiries were made to the FOS last year about loans from 16-24 year olds, up from only 947 in 2016/17 - a 213% increase.
The figures were obtained by London-based financial app W1TTY via a Freedom of Information request.
Complaints about credit services including credit cards rose by 210% during the same period, increasing 42% year-on-year on average.
Meanwhile the number of young people seeking help for debt services, including current accounts, increased a further 205%.
Ammar Kutait, CEO and founder of W1TTY, said: “This upward trend in young people seeking FOS support is worrying and reflects the rise in young people turning to loans, credit cards and other credit facilities to support their finances.
“It is important young people have access to the tools and advice to make the right choices when it comes to managing their finances. Providing financial education on how to spend and invest sensibly is key if we’re to avoid Gen Z’s becoming a generation of debt.”
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