The Consumer Credit Counselling Service (CCCS) found that the average sum owed by young people has risen by 25 per cent in the last two years to almost £15,000.

Older borrowers owe on average of almost £29,000, but young people are actually worse off as they rarely own any assets or have extra income to cover repayment.

A spokesperson from the charity said: “CCCS is counselling more young people to bankruptcy than ever before.

“With little or no spare income in young people’s salaries to attempt a debt management plan or any other form of repayment, and with few tangible assets, counsellors often find that bankruptcy may be their most suitable option.”

Increasing numbers of over-18s are indulging in today’s credit culture, whereby they have an overdraft, one or two personal loans, and two or three credit cards.

CCCS also said that before 2002 it had not taken any calls from students in financial difficulty, but now the group makes up 1.5 per cent of all young people receiving counselling through the service.

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