What is the difference between owing money and being in debt?

• "Debt is when it starts messing up your life" (15-17 year old)

• "When you realise you are in big trouble" (15-17 year old)

• " It becomes a debt when you're out of your depth and have no way of paying it back" (18-24 year old)

• "You're trapped in a vicious cycle and your destined to always be behind" (18-24 year old)

• "It's a big problem debt when you have no choice but to get another job" (18-24 year old)

• "Credit is the party. Debt is the hangover" (parent)

The experience of debt;

Finding yourself in debt can be a scary experience. Young people interviewed about the effect debt can have on your life said:

• "My parents bought me a car and I have to pay them back and then I was in an accident and I didn't have insurance so I had to borrow more money to fix it and that added up to $7000 and I was only doing casual work."

• "I owe about $10,000 all up. I'm almost managing but I need help. I would like to put my hand up and say I need help."

• "I ended up with a phone bill of $600 and I was in so much trouble."

The consequences of debt;

Getting into debt can affect your relationships with your friends and family:

• "I had this big mobile phone bill for $500 and I was scared to tell my parents but I had to in the end and they were OK but they keep bringing it up and up." (15-17 year old)

• "Our daughter was out flatting and got herself in a real mess. So she has come home and now it's all arguments about how much rent she should pay." (Parent)

These quotes have been taken from the following research:

A Research Report into Youth Debt
NSW Office Of Fair Trading , November 2003.