Under thirties drowning in thousands of pounds of debt

More than 100,000 young people have credit card debts in excess of £5,000, a report claimed today.

Research from debt specialist One Advice found that 2.4 million 18 to 24-year-olds are juggling average unsecured debts of £2,860.

As many as 108,000 young people owe more than £5,000 on credit cards, while almost 275,000 have overdrafts of more than £1,000.

Credit cards were the most widespread form of debt, with 28% of 18-24 year-olds owing an average £1,471.

One in five young people were found to have overdrafts, with a similar amount owing an average £4,404 on personal loans.

Tapping loved ones for cash is also common, with 22% owing an average £621 to family members and 18% borrowing an average £125 from friends.

Chris Holmes, chief executive of One Advice, said: "Debt is a way of life and it is disturbing to find that so many young people who are just starting their working lives are doing so while weighed down by so much debt.

"It is even more shocking to see 18 to 24-year-olds with credit card debts of more than £5,000. Many borrow the money without understanding the implications of the rate of interest charged.

"We are all aware of the debt problems students face while studying but this shows that it is not just those in further education who are going into the red regularly."

He added: "To some extent young people have no choice but to go into debt as the costs of further education are spiralling and it makes sense to borrow.

"However, building up substantial debts will limit their choice in life as they struggle to borrow money to get on the housing ladder." end

Higher Education Minister Bill Rammell said: "Student debt is a world away from credit card debt as there is no real rate of interest.

"Students only begin to repay their loan once they are earning more than £15,000. Someone on the average graduate starting salary of £18,000 will only pay back around £5.19 per week. If they earn below that figure, their repayments are frozen.

"And if there's still money to pay after 25 years, the amount will be written off. If this offer were available to anyone, there'd be queues along high streets to the bank."