Ladies and gentlemen, today I would like to talk INTRODUCTION

to you about private debt in the United Kingdom.

The age that you are free of debt is 69 for U.K.
According to a recent study that was conducted residents (12 years later than expected). Situation
in the country the average Britain will be 69 by even worse for university students.
the time they reach their debt-free birthday.

Now the debt-free birthday is a time when

someone reaches the stage where they finish
paying back their mortgage, and they’ve cleared
themselves of all arrears.

The result of this study show the debt-free

birthday is actually 12-years later than what was
expected.

The situation is even more serious for young

people who are still at university.

The debt-free birthday for those at university

would be around 74 years old. Whereas for those
at university in London, it would be 77, and that
is due to higher house prices.

Now why has the debt free holiday age increased. WHY?

Well, there are 2 reasons. ANSWERS

First, people are buying houses at a later stage or CAUSE NO. 1

when they are older, and also mortgage
affordability means that when people do buy
their house, they’re actually paying more for it.

The second reason that the debt-free holiday has CAUSE NO. 2
increased is because people are entering into
higher levels of unsecured debt than before
(particularly true for people under 25).
That means that youths are using their credit cars EFFECT No. 1
more or pay-day loans, which are very expensive
forms of debt, because they are associated with
high-interests rates.

To compound this situation, very often people EFFECT No. 2

are unaware that they consolidate these small
expensive loan into a single chepear loan, which
has lower repayments,

And that means that with this higher level of

unsecured debt from a younger age

By the time people arrive at wanting to by a EFFECT No. 3

house, they are lumbered with this unsecured
debt, and they add an mortgage on top.

(that means They are servicing a larger amount of

debt for longer.)

You may ask yourself, does it really matter? Why Effects Matter?
Well for 2 reasons.

First, it means people will enter retirement still REASON NO. 1

shouldering this large amount of debt.

This is in contradiction to the idea that most

people have a care-free retirement.

Secondly, it’s also dangerous for the economy REASON NO. 2

because it means there are many people
exposing themselves to a sudden hike in interest
rates.

If there is there is a sudden hike in interest rates, REASON NO. 3

then this could lead to another debt crisis where
the number of people defaulting on the loan
could decrease.

What could we do therefore in order to ensure WHAT’S THE SOLUTION?

that the situation doesn’t get out of control.
 First of all, I think it’s incumbent on lenders to sell SOLUTION NO. 1
credit responsibly. (example)

(Not only in their own interest, but in terms of

corporate social responsibility for the long-term
health of the economy, in order to avoid a new
bad-debt crisis.)

I think also, it would be necessary to educate SOLUTION NO. 2

people at an early stage in order to enter into (example)
debt in a more informed way.

Understanding the ramifications of taking on

short-term pay-day loans for example, or
introducing new solutions to make sure they can
clear themselves of debt more quickly, for
example, by consolidating into a cheaper loan.

Finally, I do think that perhaps the government Solution No. 3

should take a role in ensuring that lending is done (example)
responsibly, and that people are given the choice
or opportunity to make informed decision about
entering into the debt.

This is a type of speech that had

Introduction

Cause No. 1
Cause No. 2

Effect No. 1
Effect No. 2
Effect No. 3

Consequence No. 1
Consequence No. 2
Consequence No. 3

Solution No. 1
Solution No. 2
Solution No. 3