A new study shows that nearly one in four young people would think about declaring themselves insolvent in order to rid themselves of their problem debts.

The Mintel survey of people aged between 18 and 34 reveals 22% would consider going bankrupt or taking out an Individual Voluntary Arrangement (IVA) if they got into financial difficulties.

The group said young people no longer find bankruptcy unacceptable, with twice as many of those polled considering insolvency to be an acceptable solution to their problems as those in their parents' and grandparents' generations.

Mintel found that those aged between 18 and 34 are the most likely of any age group to have unsecured debt, with 60% owing money on credit cards, overdrafts and loans.

They have also accumulated higher levels of debt than other age groups, owing an average of £3,200 each, 40% more than the average adult.

One in four people aged between 18 and 24 blame their debt on frivolous spending, while the main reason for getting into debt for those aged between 25 and 34 is buying a house.

But while young people view bankruptcy as being an acceptable solution to debt, they still worry about what they owe.

Many people aged under 34 face a dual struggle of paying off student debt and trying to get on to the property ladder - and 23% admit they are stressed by their financial affairs, compared with only 17% across all age groups.

Todd Davis, senior finance analyst at Mintel, said: "Student loans and the endless stream of credit card offers, overdraft extensions and hire purchase mean that there is no longer the stigma of going into debt that there once was.

"But the fact that it is now more accepted has done little to alleviate the stress of accumulating high amounts of debt.

"Bankruptcy is now widely accepted among young adults mainly because it is the natural follow on from rising debt, but also because the Government has made the conditions of bankruptcy less painful."

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