New research shows that young homeowners who are experiencing financial difficulties owe more than £20,000 in unsecured debt.

And, according to the Consumer Credit Counselling Service (CCCS), this figure is nearly twice as much as that for those who are still renting, and have either decided against getting on the property ladder, or have not been able to afford to do so.

The debt charity said the average person aged under 24 who is on one of its debt management plans owed £16,351 during the second quarter of the year.

But it said young people who own their own home have borrowed an average of £20,290 through credit cards, loans and overdrafts.

The group said this figure compares with an average of £12,113 of unsecured debt among young people who are living in rented accommodation.

The research also found that young people who have taken the plunge and bought their own home also have more lines of credit than tenants at an average of 7.64, compared with 5.95 for renters.

The CCCS said it is likely that the increasing cost of homeownership, including rising interest rates, is responsible for the high levels of debt young property owners now find themselves in.

CCCS chairman Malcolm Hurlston said: "There is a danger in young people getting on to the housing ladder before they are ready financially.

"Before taking out a mortgage, the under-25s should make sure they can still afford to live and not rely on credit to plug any gaps. That way lies financial disaster."

The group warns that with interest rates rising to their highest level since 2001, and a further rise predicted before the end of the year, homeowners are likely to be further squeezed, particularly those who have already overstretched themselves.

The group found that personal loans account for more than half of unsecured debt among young people, while credit cards account for 28%.

It said young people tend to use more expensive forms of credit than other age groups, such as overdrafts, catalogues and store cards, as they go about building up their credit profiles.

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