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Bad borrowing decisions by young people can leave them with serious financial problems for decades to come, meaning that many are seeking debt advice from an early age.

The Personal Finance Education Group (Pfeg) have launched a new campaign in a bid to help younger people plan their finances with more confidence and to understand more about debt issues.

Wendy Van den Hende, chief executive of Pfeg, said: “Young people have to make increasingly complex decisions in a very sophisticated world and often at a very early age. They need all the help they can get.”

Research suggests that young people are not fully informed about financial products which could lead them into unaffordable debt, as the FSA (Financial Services Authority) reported that over two-thirds of young adults do not plan ahead when it comes to money matters.

The credit crunch is the perfect time to get your debts in order. As money gets harder to part with, it is important that you are not spending money when you don’t have to.

Start with your insurance premiums, as research by Fool.co.uk says that the average person pays over £1,500 a year but do not understand what they are paying for or how well they are covered.

Head of finance at the site, David Kuo, said: “The key to buying insurance is only to insure against risk that you cannot afford to bear. So, if you buy insurance you don’t need then you are wasting money. But if you don’t buy insurance that you do need, then eventually your decision will come back to haunt you.”

More than a quarter of those who look into buying insurance through the website do so to reduce their spending and take tighter control over their debt management.

Almost 4.1 million British households have been forced into debt due to the rising cost of living, in the last year alone. A study by moneysupermarket.com reveals that 7% of UK households have took out some form of loan or line of credit in order to meet basic living costs.

What makes these stats look even worse is that £30billion worth of mortgage deals are due to come to an end throughout July, which is likely to cause debt problems for many more households as they face higher mortgage payments.

If you find that you having to borrow unsecured debt in order to fund the basic and your mortgage payment, you need to seek debt advice. One Advice can offer free debt advice to help you deal with your debt levels, no matter what your personal circumstances are.

Tom Moss, head of loans and debt at the site, commented: “Having a roof over your head has to be your top priority but to be funding that with a loan you might default on or with a credit card that will eventually charge you interest of over 15 per cent isn’t the solution in the long term.”

Suddenly finding yourself out of work would leave only 52 days until the average Brit has run out of money. This research by the Yorkshire Building Society highlights how debt-ridden Britain is, as we are shunning our savings plans in order to afford day-to-day living costs.

Monthly outgoings average at £1,445 but the average Brit only has £2,474 in accessible savings.

More worryingly, 36% admitted that they had less than £500 saved, which equates to just 11 days living expenses before they would have to seek debt advice as they have simply run out of funds.

Tanya Jackson, corporate affairs manager, said: “Finances for many are already finely balanced due to the rising cost of living and the research reveals that both state benefits and savings are not viable options for the majority of consumers to rely upon for an adequate length of time.”

Those most vulnerable were divorced people who had a savings pot which would last them approximately 35 days, followed by part time workers and young people. Widowed people could survive the longest, averaging at 120 days before they would have to worry about getting into debt.

Rising living costs have stripped out any increases in pay, and the average family is £9 a week worse off than in 2007.

The average wage has increased by £22 a week during the past 12 months but this additional income has not improved the standard of living for the majority of Brits. Indeed they are more likely to need to seek debt advice as the typical family now has 6.5% less money to spare, averaging at £131 per week.

This research, by supermarket group Asda, shows wages have increased by 3.2%, but the cost of living has increased by 6.8% for items such as food, utility bills and petrol prices.

Chief executive of the group said: “Our latest report shows clear evidence of the squeeze on real disposable incomes.”

Credit cards and loans are becoming more of a lifeline for many households struggling with debt, as new research shows that many are getting into more debt through unsecured borrowing just so they can keep up with the rising costs of living.

There is now double the amount of people who are struggling with debt and their financial commitments, compared with two years ago. 4% of Brits admit that they are struggling to keep control of their debt levels and have already missed payments to their creditors.

Senior finance analyst at Mintel, Toby Clark, said: “There has clearly been a deterioration in people’s perception of their financial situation over the past two years, as rising interest rates and higher living costs have really started to take hold.”

In the survey there was a drop of 13% of people who believe that they are still comfortable with their financial situation. Yet it revealed that almost half the population (46%) have some form of unsecured debt.

Debt worries are a problem for both parents and their student children, as both vastly underestimate the amount of debt for the average university graduate.

In the research from the Association of Investment Companies (AIC), parents estimate that the average graduate debt levels are just over £9,600, whereas this figure is more like £13,000. Parents are more likely to be seeking debt advice as three quarters of parents admit that they are struggling to fund a university education for their child.

However it is likely that graduates are going to struggle to become debt free as university graduates of the future could leave with over £20,000 worth of debt, due to rising costs and top-up-fees. 23% of students said they know that will probably be paying off student debt for at least 15 years after graduation.

Communications director of AIC commented: “The credit crunch and the rising cost of living will undoubtedly make it harder for parents to fund their children’’s university years. Whilst there are many benefits that come with a university education, on graduation many young people find themselves struggling to repay their debt.”

Worried that your children are getting you into debt, whether it be kicking a ball through your window or drawing on your freshly decorates walls? You are not alone, as £229 million worth of damage to UK homes is caused by children each year!

TescoCompare.com have revealed that 41% of homeowners have not taken out insurance to cover this type of accident, meaning that they could find themselves in debt when it comes to making expensive home repairs.

Paul Baxter, from the site, warned about the risks of not having your home properly insured and said: “With children at home during the holidays the likelihood for accidents to happen increases – and if you aren’t covered for accidental damage to your possessions it isn’t too late to add this cover to your policy.”

All of us long to become debt free, and money website fool.co.uk have predicted that 47 is the magic age! This figure represents the average age when the number of people without any unsecured debt surpasses those people who are in debt.

The antithesis of becoming debt free is at the age of 28, where over two thirds of UK adults (66%) have credit card debt. This number is likely to decline to about half the population by the time we reach our mid-thirties.

The forties are the most critical years in our life for those to be seeking debt management advice. Approximately 17% will be half way through their mortgage term and 22% will have an additional form of borrowing on their home, such as a debt consolidation loan.

There are other perks of being in our forties, as this research predicts that 41 is the age where our salary peaks, meaning that we can effectively tackle our credit card debt and enjoy becoming debt free.

David Kuo, Head of Personal Finance at Fool.co.uk comments: “It only takes a minute to whip out your card and get into debt, but getting out of debt can take years. And after the gloom of finding that our forties and fifties won’t bring us the endless salary rises we hoped for, it’s nice to see light at the end of the debt tunnel, even if it’s only when we reach 47.”

Economic struggles in the UK has led to 60% of us to prioritsing cutting back on unnecessary spending above anything else, according to research from GoCompare.com. This came above saving, moving home or contributing to a pension.

Many of us are worried about getting into debt, with the rising costs of living and tightened lending criteria meaning that more and more people are seeking debt advice. The survey, which polled over 1,000 people, found that almost half (49%) are either concerned or very concerned about their finances this year and beyond.

Those which were most concerned about their financial worries fell within the 16-24 year old category (65%), which would reflect those who are struggling with education debts and trying to get their foot upon the property ladder.

Credit crunch times are hitting UK businesses hard, but the Tories have unveiled new plans to shake up current bankruptcy laws in order for companies to keep on running should they fall into financial troubles.

They are considering mirroring bankruptcy laws in the US, to create a ‘Chapter 11′ scheme. This will permit businesses to apply to court for protection from bankruptcy. The court will then look to reorganise the debts so that it can continue to trade. The court is also able to clear any of the companies debts.

Tory leader, David Cameron said: “The credit crunch has meant more companies are finding it hard to get the money they need to keep their business alive, that means one thing: more companies going into liquidation. And we all know what liquidation means: job losses.”

The credit crunch has lead to the UK taking greater control over their outgoings as there is less disposable income to play around with. It seems as though the latest economic problems are leading to pets being turfed out of their own home.

New research by Friends of the Animals charity shows that, although only part of the problem, the increase in the number of homes facing repossession has lead more families into rented accommodation where pets are simply not allowed. Last year there were 27,000 repossessions, but the Council of Mortgage Lenders forecast there to be around 45,000 in 2008.

Eileen Jones from the charity, said: “In the past year especially we have witnessed a sharp increase in the number of dogs coming into rescue. Reasons given for those handed in are varied including home moves and finances.”

Tightening our money belts is becoming a common UK past time, but worryingly 1 in 10 Brits have admitted to turning to their savings accounts in order to pay off high energy bills and ward off debt.

Further research by the Chelsea Building Society show that 13% of those surveyed have raided their savings in order to meet their accommodation costs, including rent and mortgage payments. More people may need to seek extra debt advice as almost two-thirds of those polled said that they have seen a noticeable increase in the cost of food during the last three months alone.

Darren Stevens, director of customer services at Chelsea Building Society, said: “We are concerned that many people’s finances are in real trouble due to the growing pressure of rising costs across so many essential items.” However it seems that we are prepared for these prices to keep increasing, as 80% expect the cost of food to increase and 77% expect energy prices to rise.