Tuesday 7th August, 2007 

Going bankrupt would be unthinkable wouldn't it? Not so, for one in five of Britain's young adults. Latest figures from financial research gurus, MINTEL, show that 22% of 18-34 year olds see bankruptcy or an Independent Voluntary Arrangement (IVA) as a viable way out of serious debt problems.

In the over 55 age group, only 11% thought that either bankruptcy or an IVA would be a consideration if their debts reached crisis point, yet the consequences of bankruptcy have been reduced and both options can achieve a workable release from the most drastic of debt situations. So does that mean that young people are better informed than their parents and grandparents?

A closer look at some of the figures paints a more worrying picture. Firstly, 60% of young adults have unsecured debt so for this generation, it is now the norm. The ready availability of lending in various forms has encouraged this trend and helped to inflate the amount now owed - an average of £3200. This is 40% more than the average adult and a massive difference between the generations.

Even more disturbing though, is the reason for having so much debt in the first place. You might assume that the extra burden of tuition fees or student loans would be the cause of the debt millstone around the neck of the poor young adult. What about the quarter of 18 - 24 year olds who admit that their debts are due to buying things that they didn't actually need? In other words, they are prepared to gamble with their financial future for the sake of pointless consumerism.

All of this, of course, only relates to unsecured debt. Added to it all is the fearsome factor of mortgage debt. The national average is a hefty £92,000. For young homeowners, the figure reaches an even heftier £111,500. So as older homeowners tighten their belts with higher interest rates looming, what does the future hold for our country's young debt-ridden adults?

For the 11% with Head In The Sand Syndrome, there is no problem. It is well known that if you ignore your debt problems, they will go away. Or not, as these poor souls will eventually find out.

But amongst those who are realistic, it is little wonder that 18 - 34 years olds are the age group most worried about money - they have good cause. And perhaps it's no bad thing that they perceive bankruptcy or an IVA as a possible way out of debt - it seems likely that many more will find that possibility becoming a reality.