Young people who may be struggling with debt have been urged to seek help from professionals rather than falling into further difficulties.
The Insolvency Service has carried out research and found that one in four people turning to Debt Relief Orders (DROs) is now aged between 25 and 34, more than any other demographic.
DROs were first introduced in 2009 and involve a formal insolvency process for people with relatively low levels of debt, but meagre incomes and no prospect of paying it off.
One in three under-25s given a DRO owed less than £5,000.
The Insolvency Service has now begun a campaign called Dealing with your Debt in conjunction with the Citizens Advice Bureau, Money Advice Trust and the Consumer Credit Counselling Service (CCCS), which will provide free information and encourage Britons to manage their debt responsibly.
It also warns of the dangers of taking out high-interest short-term loans and of paying for debt consolidation.
Chief executive of the organisation Stephen Speed said: "Owing more money than you can afford to repay is a daunting prospect, especially when you're young, but there are a number of options you can take and there is help available.
"If used correctly, a DRO can help people to address their debt problems and start again with a different attitude to credit and debt."
Insolvency firm R3 recently found that 45 per cent of people are now struggling to make their salary last from month to month, with many turning to payday loans.
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