A new study reveals that nearly three-quarters of people under the age of 35 are struggling to manage their debts, with around one in five admitting they spend more than they earn each month.

The Skipton Building Society report found that 74% of people in this age group are in the red, and typically owe more than £9,000, while 12% actually owe more than £20,000.

The group found that 50% of those it questioned had amassed debts on credit cards, while a further 33% have a student loan, 28% have a bank loan and 12% owe money on store cards.

At the same time, 12% have borrowed cash from their parents while 4% have taken loans from other relatives.

The research reveals that young people's high level of borrowings are beginning to take a toll on their finances, with the average under-35 paying £206 a month in debt repayments - which is their second largest outgoing after they have covered their mortgage or rent.

Typically, they spend twice as much servicing their debt as they do on socialising, and more than three times as much as they pay into a pension.

Around 40% said they are struggling financially, with 18% confessing that they spend more than they earn every month, while nearly 50% have less than £100 left when they get paid.

As a result, 18% admitted they put off paying bills in an attempt to make ends meet, while 15% delayed making debt repayments and 10% stalled on their rent or mortgage.

One in five of those questioned said that their lack of cash had meant they had not eaten properly, while 19% said they had been forced to take an extra job to make ends meet.

Skipton found that 48% of people have less than £1,000 in savings while 22% have nothing set aside at all for a rainy day.

Among those who are saving, the average person puts away £181.52 a month, and one in five savers have accumulated more than £10,000.

Copyright © PA Business 2008