The Federal Government will lead the States in finding ways to stem the rising rate of debt incurred by teenagers, said to be running as high as $25,000 for some.
The Parliamentary Secretary to the Treasurer, Senator Ian Campbell, said today he would put forward a proposal at tomorrow’s meeting of the Ministerial Council on Consumer Affairs in Sydney for a coordinated approach to the problem.
“I will be recommending that a joint committee be set up immediately to address key financial consumer issues affecting young Australians,” he said.
“Personal debt levels of young people are a real concern and reflect a trend that has taken hold in recent years.
“Statistics for particular age groups are not available, but there is evidence that many young people have debts of between $10,000 and $25,000. Even 14-year-olds are running up big sums.
“When school children are able to get in quite deep financial holes, with limited capacity to find their way out, it’s a serious problem for the youngsters themselves and their families.
“The advent of technology, especially mobile phones, peer pressure and access to credit are all playing a part in driving up the level of young people’s debt.”
Senator Campbell said more financial literacy programs in schools were needed to educate children at an early age about how to avoid debt pitfalls.
He said the Commonwealth currently had several projects underway, including the Australian Securities and Investment Commission’s Financial Literacy in Schools Project, which aims to have financial literacy introduced as a subject.
SYDNEY
31 July 2003
Contact: Wayne Grant 08 9421 1755 or 0411 875141