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Stevenson College Edinburgh |
REPORT ON CREDIT ISSUES AND YOUNG PEOPLE |

By OLUSOLA .O. OKUNADE |

Contents Page no

1. INTRODUCTION 3
2. PROCEDURE 3
3. FINDINGS 3
3.1 Definition of Credit: 3
3.2 Different types of Credit include: 3
3.3 Causes of debt for young people 4
3.4 Consequences of youth being in debt 4
3.5 The role of Citizen’s Advice Scotland and other Agencies 6
4. CONCLUSIONS 7
4.1 Easy credit availability 7
4.2 Financial literacy 7
4.3 Money management 7
5 RECOMMENDATIONS 7
5.1 Education 7
5.2 Regulation 8

  1. INTRODUCTION
The report will analyse the issues of credit and debt amongst young people. The report is for ABC agency which deals with young people and financial issues. The report will describe what is credit and different types of credit. It will consider findings relating to young people and debt – causes, consequences, and relevant statistics. It will outline the role of Citizen’s Advice Scotland and other agencies that can help people deal with debt. Conclusion will be drawn and a recommendation will be made.
  2. PROCEDURE
The information was collated from:
  * Article from The Sunday Herald 13 November 2005: Teenager shopaholics are buying into a life weighed down by debt
  * Article from Consumer Credit Counselling Service
  * Information from CAB Adviceguide: Debt – In Scotland:       Credit
  * Information from CAB Adviceguide Debt in Scotland:   Dealing with Debt
  * Information from www.cas.org.uk
  * Information from www.Adviseguide.org.uk/scotland

3. FINDINGS
3.1 Definition of Credit:
Credit is borrowing money, usually to buy goods. Interest has to be paid on a loan. There may also be administrative costs to pay and interest may be charged on these too, if there is a default on credit payments.
3.2 Different types of Credit include:
  * Credit sales: These are services or goods bought at cash price with the promise to pay later. Repayment is made in instalments which makes this type of credit agreement the most...