Inga Tracey 11:54, 7 Sep 2004 (EST)
FINANCIAL IMPLICATIONS
Many of the new technologies are being blamed for the rising incidence of problem [debts] among young people, (The 7.30 Report; O'Brien, 2004). The problem according to a report by Renae Robinson, for The Sunday Mail, is that young people are being drawn into debt traps. Robinson states within her report that according to Loretta Kreet of Legal Aid Queensland, young people could lose their assets and gain criminal records, if they rack up debt on a mobile phone or [internet service], and find they are faced with a bill they can not pay (Robinson, 2004, p.62). Part of the problem is that the new technologies are often targeted at young people who are not experienced in the runnings of finances and are not usually savvy when it comes to dealing with contracts(Robinson, 2004, p.62).
When looking more specifically at the [debt problem], there is significant evidence that the bulk of the debt in youth culture is being caused by the mobile phone. According to a research report conducted by the Communications Law Centre in 1999, for many of the 16-21 yr olds that participated in the research the mobile phone is now regarded as a necessity of life (Funston & MacNeill, 1999, p.3-4). This finding is also backed up in an article written by Alex Tilbury, for [The Courier Mail], 2004. Within this article Tilbury points out that almost 20% of Australian households will soon be without a phone connection, as the majority of Australians are switching from landline to [mobile plan] (Tilbury, 2004, p.85)
Also according to the report conducted by the Communications Law Centre, alarmingly the size of the bill doesn’t seen to predict anxiety. The high levels of debt can be attributed to the findings that 18% of respondents did not read their mobile phone contract before signing it or did read it but didn’t understand it (7%).The study identified that of 42 files of applicants for bankruptcy aged 25 and under, 30% contained an outstanding mobile phone bill in the statement of liabilities (Funston & MacNeill, 1999, p.3-4).
The high debt problem occuring in youth culture due to the increased use and dependancy on new technologies, means not only a debt beyond their years, but also according to Karren Percy reporting for the ABC, 'That these days one in five people will apply for bankruptcy under the age of 30' (Percy, 2004, www.abc.net.au/am/content/2004/s1150917.htm)
Inga Tracey 13:37, 26 Oct 2004 (EST)
REFERENCES
Inga Tracey 14:25, 26 Oct 2004 (EST)
