Two thirds (65%) of people in the UK aged between 25 and 34 years old are currently in debt, with almost half (48%) of people aged between 18 and 24 years old also in the same financial situation, Tesco Bank has found.

In research by the bank, it was found that young men aged between 18 and 24 (£3,165) are more likely to hold more debt compared to women of the same age (£1,882).

Credit cards are the main form of borrowing among this younger age group (23%), with younger generations being more likely to owe family members money (16%), be overdrawn (14%) and use ‘buy now pay later’ schemes (12%).

With this in mind, Tesco Bank’s research revealed that 95% of Brits believe that it is important that people learn about debt and understand how to manage their money from a young age, with most (61%) stating that it best for young people to learn before they turn 18.

The lender said that the hope is that this will create good money habits for the long term, with 60% of those surveyed seeing education as a way to help people make more informed decisions about current and future finances, as well as instilling good saving vs spending habits (60%).

Over half (52%) also think that it will equip younger generations with more confidence when it comes to their finances, ensuring they know where to turn to if struggling with debt (39%), while also preventing them from getting into debt in the first place (31%).

Spend and save director at Tesco Bank, Ban Mahsoub, said: "It’s not surprising that borrowing and debt are a reality for many people, including the younger generations. With this in mind, and particularly for those at the start of their financial journey through life, it's vital to know the difference between the various types of borrowing, what it should be used for and where it can help or hinder financial futures.

"If managed well, debt can help build a credit score and instil good money habits, but it requires careful management, especially if you borrow from a number of providers at the same time. It can be hard to keep track of what payments you need to meet, which is the most important, and by when. It’s especially important that younger people consider whether they have the most appropriate form of borrowing for their circumstances, including whether debt consolidation may help them manage this more effectively.

"If you’re in this situation or are worried about any debt you have, regardless of your age, and don’t know where to turn, speak to an independent debt charity who can help with free impartial advice."

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