Almost a third of consumers aged 18 to 25 have borrowed more than £1,000 over the past year, according to a new report from Equiniti.

This equates to around two million people according to estimates and the highest proportion of any demographic.

Equiniti managing director of credit services Richard Carter said: “There is no doubt that for many young people, money is tight at the minute, and so it is little surprise that the 18 to 25 age group has the highest rate of borrowing over £1,000 in the past 12 months.

“Wages are failing to keep up with inflation and so credit is one way in which the youngest can cope with financial shocks, to plug unexpected, short-term gaps.

“However, it is crucial that we protect these consumers from falling into perpetual debt, which may damage their long-term economic prospects. This is why Equiniti encourage young people to seek proper advice about their financial options and, if taking out a loan appears the best option, to shop around using comparison websites to ensure they are getting the best possible deal.”

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