“I didn’t know that was debt…”
This is a sentence our trainers at Money Ready hear all the time. Because for many young people, debt doesn’t always look how they expect it to.
Young people often understand the basic idea: if you borrow money, you have to pay it back. And so, when we talk about debt, most people picture big loans given by the bank or a payday lender, which feels like a serious commitment.
But here’s the thing. Many common financial products like mobile phone contracts, overdrafts and Buy Now Pay Later (BNPL) schemes are also forms of borrowing. The trouble is, they just don’t feel like it.
We’ve heard stories from our trainers of young people who stopped paying their phone contracts after losing their device, not realising they were still tied into a financial agreement. Others didn’t realise that dipping into your overdraft meant owing the bank money, or that BNPL schemes, often marketed as ‘interest-free’ and ‘stress-free’, could impact your credit score if payments are missed.
Without understanding what counts as debt, it is easy for young people to make quick decisions that have long-term consequences.
That’s why at Money Ready we’re working to close this knowledge gap. Through relatable conversations and clear, accessible guidance, our trainers are helping young people understand what debt actually is so they can make more informed decisions and avoid costly mistakes. Because understanding what debt is, is the first step to staying on top of it.
“Good debt? Isn’t all debt bad?”
Here’s something that surprises a lot of young people — being in debt isn’t unusual, it’s actually incredibly common and not always a bad thing!
When we start talking about debt in Money Ready sessions, our trainers often hear the same things: “Debt is bad” or “I’d never get a credit card”. For many young people, debt is associated with struggling, or something that’s gone wrong.
But the reality is different. Most adults will take on some form of debt, and when done responsibly, this can be part of a positive financial journey. Whether it’s using a credit card to build up a credit score, taking out a student loan, signing up for a mobile phone contract, or getting a mortgage, the key is whether that debt is manageable or unmanageable.
Our trainers work hard to challenge the idea that all debt is bad by introducing a more balanced perspective: borrowing money isn’t automatically bad, it depends on how you use it. One trainer told us they simply ask, ‘Guess what debts I have?’. Young people are often surprised to hear that ‘someone who knows about money’ has borrowed too, opening the door to honest conversations.
By sharing personal stories and talking openly, our trainers help young people see that debt isn’t something to be feared or hidden, it’s something to be understood and managed — and it’s a good idea to talk about it. The goal isn’t to avoid all debt, it’s to build the knowledge and confidence to handle it responsibly.
At Money Ready, we’re not just tackling the taboo around debt, we’re normalising it, and equipping young people with the skills and knowledge to make informed decisions about their financial futures.
If you are struggling with debt, there are plenty of organisations that offer free, impartial and confidential debt advice. Read our article How do I get help if I’m in debt? for more details.